Home Hammond PI Blogs PI Insurers and policyholders to feel impact of governments increase in civil money claim court fees
PI Insurers and policyholders to feel impact of governments increase in civil money claim court fees
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Written by Dave Hedgecock   
Saturday, 07 March 2015 18:46

There will be large increases in court fees from March 2015 earlier that had initially been expected.   From Monday 9 March there will be a change to the way fees are charged in both 'specified' and 'unspecified' money claims.

Of relevance to PI insurers and policyholders:

  • Claims for between £10,000 and £200,000 will incur a court fee of 5% of the amount claimed, which would see, for example, a 400% increase in the fee charged for a claim for £90,000 (from £910 to £4,500)
  • Claims for over £200,000 will incur a fixed court fee of £10,000, an increase of over 400%
  • The Court fees for claims valued between £0 and £10,000 are unchanged

What will this mean for insurers and PII policholders

Claims issued from next week, 9 March 2015 onwards, will require larger reserves to be held for claimant’s costs and will need to reflect the higher fees which may be recoverable in the event that a claimant is successful.

Insurers may have to give greater thought to the decision to defend a claim or if to settle early, not something which always sits well with the policyholder who believes he/she is being wronged.

There are many other implication, however, the law society has expressed its own concern at the large increases and has suggested a review be sought.  We will report more on this as the new rules unfold.

Read more on the law society website

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