The country's senior cost judge, Master Peter Hurst has "dramatically" reduced the cost of After the Event (ATE) premiums which are recoverable, according to Carters Solicitors.
The judgement was the second tranche in the test cases for intermediary The Accident Group. The case concerns the level of ATE premiums and other disbursements.
Until the cases were brought to court the insurance industry had refused to refund legal expenses deemed payable to consumers under the Access to Justice Act 2000, which was introduced to replace legal aid for personal injury claimants.
According to the solicitors' firm, the level of ATE premiums recoverable are now moored between the £367.50 allowed in Callery -v- Gray for straightforward motor claims and the £621.13 allowed in Claims Direct for a wider spectrum of work.
A Carters statement said: "Yet again, the courts have dramatically reduced the cost of After the Event premiums which are recoverable.
"The judiciary now recognise there is a clear difference between the costs of marketing and running an accident management company and those costs which are properly described as a recoverable premium."
