NU attempts to unblock rehab

An end to the deadlock surrounding provision of rehabilitation has been proposed by Norwich Union (NU). Britain's biggest general insurer said that rehabilitation should be offered to injured parties before liability has been decided.Launching its proposal - A modern compensation system: moving from concept to reality - NU said that if a claimant refused rehabilitation unreasonably, their damages would be reduced by the amount by which their recovery had been delayed and to a minimum figure of 10%. It added: "If the wrongdoer fails to offer reasonable rehabilitation, the claimant will be entitled to a 10% uplift in their damages."The controversial proposal also states that the limit for small track claims should be raised from £1,000 to £5,000, and that fast track limits should be increased to £50,000.In cases of up to £1,000, NU said that damages should not be recoverable. "People should not feel they have the automatic right to compensation," said NU chief executive Patrick Snowball.NU added that solicitors should not be involved in claims up to £5,000. "All they are doing is claims handling," said Dominic Clayden, NU director of technical claims. "There are claims where a personal injury lawyer is of value. But they should be specialists, not the same lawyers that do peoples' conveyancing," he added. NU said that claimants were still likely to seek specialist legal assistance for claims worth more than £5,000. NU said the reforms could be made by changing legal rules rather than with specific legislation.

NU's plan in briefGeneral principles

The wrongdoer should have first, unfettered opportunity to resolve the claimant's problem

No dispute, so no legal costs

Rehabilitation first, cash later

Proportionate medical reporting - greater role for GPs rather than expensive specialists

For small claims

Compensator to give liability decision in 60 days of claim notification

Claimants must make claim within 12 months of knowing they could claim

No contributory negligence

For claims between £5,000 and £50,000

Penalties for not using rehabilitation

Potential compensator gives decision on liability in 90 days

For claims over £50,000

If fully involved, insurers can immediately agree funding or develop tailored help for injured parties.