According to the Association of British Insurers (ABI), the proposal of government on reform of the civil litigation system can lead to cheaper insurance for costumers. A discussion was held this week by Justice Secretary, Kenneth Clarke.

The proposal is good news for genuine claimants. The proposal includes successful claimants in no win, no fee cases having to pay lawyers.

The trade body for the insurance industry has urged government to reduce the high level of legal costs in settling personal injury claims to reform the current system.

These high costs are the main reason of hike in the car insurance.

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