The Association of British Insurers (ABI) has welcomed the government announcement to extend the claims limit for settling personal injury motor claims from £10,000 to £25,000.

According to the insurer trade body, the development will mean faster compensation pay-outs for an additional 55,000 people injured in road accidents a year. It added that around 97% of motor personal injury claimants will now be able to claim through the fast track process.

The fast track process was introduced in April 2010 and involved stringent time limits for insurers and legal representatives in establishing any liability, standardised claim forms and fixed legal costs.

The ABI also welcomed the government’s intention to introduce a similar scheme for claims for workplace-related injuries and public liability claims.

Nick Starling, the ABI’s director of general insurance, said: "This is good news for thousands more claimants who will get their compensation much more quickly. In less than two years evidence shows that this process is leading to the average pay-out time being more than halved and lower legal costs.

“The government must now press on with its wide-ranging and long overdue reforms to civil litigation to ensure that steps such as reducing fixed legal costs lead to a more cost efficient compensation system.”

Original Article 10/2/12: Insurance Age