BLM publishes MOJ Portal analysis

14 May 2020

 

Click here to read the full report.

Key observations and conclusions this quarter include:

Observations

  • The volume of CNFs sent, when compared with the previous reporting year, has fallen by 48,478 (- 7.0 %) to 646,282 when compared with the same period last year.

  • Stage 1 exits, when compared with the previous reporting year, have fallen by 12,203 (- 8.6%) to 130,344.

  • Stage 2 exits, when compared with the previous reporting year, have increased by 547 (+ 4.4%) to 13,116.

  • The number of claims using the Exit Process, when compared with the previous reporting year, has increased by 3,019 (+1.9%) to 165,440.

  • The percentage of CNFs exiting for one reason or another averages 49.1%, which represents an increase (+3.5%) when compared with the previous reporting year’s figure of 45.6%.

  • Stage 2 settlements, when compared with the previous reporting year, have fallen by 2,012 (-1.2%) to 164,656.

  • Stage 3 court packs, when compared with the previous reporting year, have fallen by 6,363 (- 8.9%) to 65,189.

Conclusions

  • CNFs sent – the volume of CNFs sent during 2019/20 (646,282) continues to fall to its lowest annual level – save for 2010 when the Portal was introduced (629,769) – naturally, a positive sign reflecting the probable consequences of the Government’s package of proposed ‘whiplash’ reforms, which had been expected to enter force in April 2020 (now April 2021).

  • Stage 1 – the number of Stage 1 exits during 2019/20 (130,344) also fell to its lowest annual level since inception of the Portal in 2010 – a further encouraging sign that fewer contentious claims (i.e. those for which liability is not admitted) are entering the Portal and exiting at the earliest opportunity.

  • Stage 2 – the number of Stage 2 exits during 2019/20 (13,116) has increased marginally to levels last seen in 2016/17, and by approximately 1,000 claims since 2017/18.

  • General Exit Process – the number of claims using the general exit process continues to increase to level last seen in 2015/16, with the proportion of claims exiting overall increasing by 3.5% to 49.1% when compared with the previous reporting year.

  • Claims YTD that either settled at Stage 2 or proceeded to Stage 3 total 229,845 (35.6% of the total of CNFs sent), which represents an increase in the proportion (1.4%) albeit a reduction in real terms when compared with the previous reporting year (237,202).

  • The number of Stage 3 court packs prepared as a percentage of CNFs retained averages 22.4%, which represents an increase of 3.4% when compared with the same period during the previous year (19.0%) – a potentially negative sign indicating claims are either proceeding to a disposal hearing or settling later in the process when claimants’ legal representatives are entitled to recover an additional ‘Type A’ fee.

  • Retained claims unaccounted for by either a Stage 2 settlement or a Stage 3 court pack total 107,537 (16.6%), which – whilst representing a significant fall of 33,228 claims (- 5.1%) – will have been skewed by the dramatic reduction in claims frequency for April 2020 as a result of the pandemic. Analysis will continue to be required by customers to track the progress and lifecycle of claims which either stall at Stage 2 before being abandoned, stayed or resurrected (or are otherwise progressing through the Portal, e.g. claims where liability decisions remain outstanding) given that the published data does not capture this information.

 

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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Kerris Dale

Kerris Dale

Partner, head of office and head of motor,
Cardiff


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