The publication of government proposals aimed at radically overhauling the personal injury compensation system has been delayed until the end of January, Insurance Times understands.
The delay comes amid tense discussions over whether the small claims limit should be raised from £1,000 to £5,000, as recommended by the ABI. The Law Society last month accused insurers of being untrustworthy, and only raising the limit to avoid paying more claims.
The Law Society said its research revealed that four out of five claimants would not trust insurers to compensate fairly.
Yet a Department for Constitutional Affairs (DCA) select committee recommended the limit be raised to £2,500 to allow more claims to be fast tracked through the system, hinting at a potential compromise solution.
The DCA originally intended to publish a consultation paper on its proposals before Christmas.
It is understood that delays have arisen because civil servants are considering further reports, which are believed to be relevant to the proposals.
One claims insider said: "The DCA is playing a little politics, it wants to look at every report before the proposals are put out.
"I suppose it is better to get it right first time than to have to go through this whole process again in a few years."