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Special Jurisdictions Focus

30 January 2025

Scottish Law Commission report on damages released.The surge of Accident Management Companies in Northern Ireland.

 The Scottish Law Commission produced its long-awaited report on damages for personal injury at the end of 2024.

Andrew Lothian comments on the main issues from the report here. The report, accompanied by a draft Damages (Scotland) Bill, recommends several key changes outlined below;

  1. Expanding the definition of “relative”
  2. Clarifying deductions from damages
  3. Provisional damages and asbestos-related diseases
  4. Enhanced management of children’s awards

The proposed revisions may result in higher damages awards in specific instances, affecting insurers, legal professionals, and other stakeholders engaged in personal injury claims.

Also from the Scottish team Lynne Macfarlane, Partner & Solicitor Advocate, addresses the importance of our working environment and culture to the continuing growth and success of the team.

The surge of Accident Management Companies in Northern Ireland

Over the past 18-24 months, the volume of Accident Management Companies (AMCs) has more than doubled in Northern Ireland, causing insurers increasing difficulties in applying the know your opponent strategy.

Credit hire claims feature heavily in road traffic litigation in Northern Ireland.

Traditionally, it was a market whereby the know your opponent strategy was not difficult to apply, given the limited number of companies. However, the past two years has seen a surge of new companies entering the market, requiring insurers to review and implement bespoke strategies.

In addition to the emergence of new companies, vehicles have become more expensive and time consuming to repair and political issues such as Brexit have impacted the availability of vehicle parts, resulting in extended hire periods.

The credit hire sphere is never far from controversy. However, in NI, there is an added complication in that AMCs are not regulated.

DWF (NI) held a forum for industry representatives where the issue was discussed at length. Soon after the forum, the ABI liaised with the Department of Finance to request the FCA’s remit for regulating Claims Management Companies is extended to cover Northern Ireland. This would be a welcome change and afford better protection for the consumer.

DWF Scotland has experience in engaging with key stakeholders to argue for change in this area. Historically AMCs were not regulated in Scotland. The DWF team in Scotland worked closely with FOIL, the ABI and the Scottish Government to make the case for regulation in Scotland. From 1 April 2019 AMCs have been regulated in Scotland.

Other news in our Special Jurisdictions

Andrew Lothian, Appointed to the Civil Justice Committee of the Law Society of Scotland

We are delighted to announce the appointment of Andrew Lothian, Partner, to the Civil Justice Committee (CJC) of the Law Society of Scotland. This prestigious appointment reflects Andrew's experience and commitment to the legal profession. His appointment to the CJC will enable him to further influence and contribute to the development of civil law reforms playing a crucial role in shaping the future of civil justice in Scotland. The CJC aims to improve the practice and procedure of civil law by influencing change and responding effectively to civil law reform proposals from Westminster, Holyrood, Brussels, and beyond.

Andrew Lothian expressed his enthusiasm for the new role, stating, "I am honoured to be appointed to the Civil Justice Committee of the Law Society of Scotland. This is an exciting opportunity to contribute to the ongoing development of civil justice in Scotland and to work alongside esteemed colleagues to influence positive change."

New Head of Insurance in Dublin

We are delighted to welcome James Colville as our Head of Insurance and managing partner of the Dublin office.

Save the date!

Our popular annual Special Jurisdictions Insurance Training Week will take place week commencing 2 June. We will be in touch with the formal invite and agenda.

 

Further Reading