An agreement to cap medical reporting fees has been reached between 10 leading insurers and medico-legal reporting organisations.
The deal could slash the fees paid by insurers by up to 20%, according to the Association of Medical Reporting Organisations.
The agreement brings to an end a lengthy period of court rulings, which began in 2004.
As part of the deal, insurers have agreed to withdraw their appeal of the decision in Woollard v Fowler, which ruled that insurers should be responsible for paying for the disbursement of medical reporting fees.
Fixed fees have now been agreed for medical reporting for road traffic accidents, employers' liability and public liability cases where damages do not exceed £15,000.
“This new agreement will bring certainty around the pricing of medical reports, and reduce unnecessary, expensive satellite litigation.
Ray Fisher, senior claims technician at Zurich
The fees start at £195 for a GP referral with no report, significantly less than the current average of £250.
Insurers retain the right to seek lower fees from independent medical reporters.
Ray Fisher, senior claims technician at Zurich, said: "We are extremely pleased to reach this landmark industry agreement on medical fees.
"This new agreement will bring certainty around the pricing of medical reports, and reduce unnecessary, expensive satellite litigation.
"It gives insurers the option to pay for medical services up front, which removes the costly and unnecessary time spent negotiating such costs at the end of the claim."