A predictable surge of companies seeking opportunities in the reformed personal injury market has begun, with a funder going into the claims generation business.
Specialist PI finance provider BMS Funding Ltd says its partnership with digital platform Claims Technology is the first of its kind ahead of the Civil Liability Act coming into force in April. From then, all RTA claims worth less than £5,000 are due to go through a new claims portal being designed to be accessed by litigants in person as well as represented claimants.
BMS says its product can help more firms, many of which rely on low-value cases, gain access to the new system and ultimately secure their future.
The new platform takes direct instructions on a claim, carries out an ID check, prepares retainer documents and sends automatic chaser messages to the client. Medical appointments – mandatory now for claimants seeking compensation – are automatically scheduled through the MedCo system. Once the case had progressed, the system will prepare two-stage settlement packs so the claim can reach completion.
Tony Sullman, chief executive of BMS Funding, said the system is aimed at giving claimant firms a more positive approach to the impending changes and lower damages tariffs.
‘Without a system like this to incentivise and support solicitors, clients may share their case with another competitor or decide to take it on themselves without any professional support,’ he said. ‘All of this means firms are very likely to suffer. By saving expensive labour costs through processing RTA claims through this system, we’re essentially making it possible for solicitors to focus their time on securing more profitable work but still enjoy the revenue stream coming from these cases.’
BMS says it will pay firms £150 for every successful case processed through the system. The company will boost its profitability through partnerships with various medical agencies on its panel, and through assisting clients through vehicle repairs and/or the provision of a hire vehicle – neither of which is part of the portal.
The automated system links directly into a third party which uploads to the MoJ portal, so should be fully integrated by April.
The government is expected to give more details this week about how the new portal will work alongside MedCo, the organisation responsible for regulating and accrediting medical experts diagnosing whiplash cases. This follows a consultation earlier this year into who would pay for appointments, what they would cost and what skills would be required of the experts.