Abbey revamps premiums for low value RTA claims

Abbey Legal Protection (ALP) has announced its plans to amend the premium on its online after the event (ATE) insurance service, Accident Line Protect Plus.

The changes affect cases which will be handled under the Ministry of Justice’s new fast-track system for cases worth between £1,000 and £10,000.

Under the changes implemented by the legal expense insurer to its ATE Protect Plus premium model, all such cases will have to be insured before being notified through the portal through which they will be processed under the new system.

Cover will automatically continue throughout the life of a case with staged fixed prices all the way to trial. In addition, premiums will be set so that amount payable will be determined according to the stage at which the case concludes.

Under the new premium structure, there will be no premium charged for cases concluding by settlement within stages one and two of the process, reflecting the lack of risk for the insured. For stage three process RTA hearings, ALP will charge a £100 premium. Non process cases will vary; RTA from £375; for non RTA from £685; and Industrial Disease from £850; plus Insurance Premium Tax in each case.

David Hartley, ALP’s director of ATE services, said, “We think it right that responsible ATE providers should follow the true spirit of the RTA reforms. Our new premium structure is transparent across all stages of a case and more closely matches price to risk. Accident Line members will have no fear about satellite litigation over “early cover” premiums