Settling a claim as quickly as possible is hugely important to all our claimants, especially those suffering the stress of losing income whilst they can’t work. It’s less important to the defendant insurers who may have to pay out compensation. Of course, it’s their job to pay out as little as possible, and it is our solicitors’ job to ensure that claims are settled quickly and to their maximum value.
This often means claimants feel the insurer is stalling and taking longer than necessary to reply. Furthermore, it’s common for this to lead to anxiety and uncertainty about the claims process. How long will it take? When will you hear back from the insurer? The waiting game can be frustrating and add to your stress. However, understanding the timelines involved in the claims process can help alleviate some of this anxiety and allow you to focus on your recovery.
No two claims are the same, so it is impossible to predict how your claim will go. However, we can give you an idea of what you can expect and how the claims process works:
1. Initial Enquiry
- Contact a specialist personal injury solicitor
- Provide basic details about your accident and injuries
- Receive an initial assessment of your claim’s viability
2. Claim Evaluation
- In-depth discussion with your solicitor about the incident
- Assessment of evidence and medical reports
- Determination of claim value and likelihood of success
3. Claim Submission
- Solicitor prepares and submits the claim to the defendant’s insurer
- Insurer has 21 days to acknowledge receipt and 3 months to investigate
4. Evidence Gathering
- Collection of witness statements
- Obtaining CCTV footage or photographs
- Arranging independent medical examinations
5. Negotiation
- Your solicitor negotiates with the defendant’s insurer
- Discussion of liability and compensation amount
- Aim to reach a fair settlement without court proceedings
6. Settlement or Court Proceedings
- If a fair settlement is agreed, the claim is concluded
- If no agreement is reached, court proceedings may be initiated
- Most cases settle before reaching court
Insurer Response Times – ‘Pre-action Protocols’
It will not surprise you to learn that insurers are not always great at acting quickly and often drag their feet at every stage of the claims process. The good news for claimants is that there are legal time limits to make sure that claims are processed in an expedient manner. These timelines are set out in the Pre-Action Protocol for Personal Injury Claims, which is part of the Civil Procedure Rules in England and Wales.
Pre-action protocols set a deadline for defendant insurers to respond to claims and carry out their investigations into allegations made against their insured. They aim to encourage the early exchange of information between parties and promote settlement without the need for court proceedings.
The protocols allow maximum response times for defendant insurers, motivating them to investigate and settle claims quickly. The times and guidelines can vary depending on the claim type. For example, road accident claims have different protocols to other personal injury claims.
Personal Injury Claim Protocols
Pre-action protocols for personal injury claims allow a maximum response time that is effectively 3 months and 21 days from the date that a claimant’s solicitor has submitted a letter of claim. This usually plays out as follows:
Initial Acknowledgement
- Claimant solicitor submits a letter of claim to the third party insurer, outlining the specifics of the claim and why they are being held responsible.
- The insurer is required to acknowledge receipt of the claim within 21 days. This acknowledgement is typically a formal letter or email confirming that they have received the claim and are beginning their investigation.
Liability Decision
Following the initial acknowledgement, insurers have a further 3 months to investigate the claim and provide a decision on liability. During this period, they will:
- Review the evidence provided
- Potentially conduct their own investigations
- Assess the circumstances of the accident
- Determine whether their policyholder is at fault
After the 3 month period, the insurer’s reply has to state whether or not they admit liability. If there is a denial of liability, the response has to state disclosure evidence that details why they have not admitted liability and what their defence is.
While insurers are bound by the pre-action protocol to respond within specific timeframes, it’s important to remember that each case is unique and may require different handling times. In the rare case where an insurer fails to provide a response within the time allowed, a solicitor may decide to go to the courts to progress the claim.
Road Traffic Accident Protocols
Pre-action protocols for a road traffic accident claim set a different time limit to other personal injury claims. They allow a maximum response time of 15 working days. Such claims are run via the claims portal and work using this method:
- Claimant solicitor submits a Claim Notification Form (CNF) to the insurers defending the claim. This has to provide all the information that a defendant insurer will need to be able to fully investigate the claim and decide upon who is liable.
- When a defendant insurer fails to respond within the 15 working day time limit, the claim will then continue via the pre-action personal injury protocol, stated previously.
Factors Affecting Response Time
While insurers are expected to adhere to these timelines, several factors can influence the actual response time:
- Complexity of the case
- Severity of injuries
- Availability of evidence
- Cooperation of involved parties
- Workload of the insurance company
In some instances, insurers may request an extension if they require more time to investigate complex claims thoroughly.
What to Do If There’s a Delay
If you experience delays beyond the standard timelines:
- Contact your solicitor for an update
- Ask your solicitor to chase the insurer for a response
- Consider filing a complaint with the insurer if delays are excessive
- In extreme cases, your solicitor may advise initiating court proceedings
Tips for a Smooth Claims Process
To help ensure a timely response from insurers:
- Provide all requested information promptly
- Gather and submit comprehensive evidence
- Attend all medical appointments
- Keep detailed records of your injuries and recovery
- Maintain open communication with your solicitor
How Long Should an Insurer Take to Pay Out Compensation?
Every claimant wants to settle their claim as quickly as possible and move on from their injury. But to get to the point where a compensation claim can be settled involves evidence, expert opinions and investigations from insurers. It also requires clear communication between insurers, solicitors, claimants and occasionally the courts. All of this can take time.
Some claim types are known to settle more quickly than others. In cases where negligence is obvious and injuries and losses are not in dispute, and a defendant insurer has no reasonable option other than to make an admission of liability, a claim will settle more quickly. Perhaps within a few months.
Conversely, in a more complex claim where negligence isn’t so obvious, a claimant solicitor will have to make a strong argument to succeed and achieve an admission of liability. Here a claim will take longer to settle and could mean it takes a few years to receive compensation.
As you would expect with two opposing parties, there are many issues that can arise to slow things down. As each case is different, there is no way of knowing exactly how long it can take to receive compensation. However, what we can do is ensure our claimants aren’t waiting on us for their case to progress.
Frequently Asked Questions
Yes, in complex cases, insurers may request an extension. However, they should communicate this clearly.
Your solicitor can chase the insurer and, if necessary, consider initiating court proceedings.
Yes, the 21 days are calendar days, not just working days.
It’s generally advisable to communicate through your solicitor to ensure all correspondence is properly managed and documented.
This can vary, but you should expect regular updates, especially after key milestones such as the initial acknowledgement and liability decision.
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