People injured in road accidents will be able to claim damages more quickly under a fast-track claims process announced by ministers yesterday.

Under the streamlined procedure, claims valued at between £1,000 and £10,000 can be lodged more quickly, with provision for early admissions of liability and settlement.

The idea is to remove duplication of work and so speed up the process for road accident cases that make up 75 per cent of all personal injury claims.

However, ministers came under immediate fire for creating a two-tier compensation system that will help victims of road accidents, but not victims of accidents at work. Steve Thomas, technical claims manager at Zurich Insurance, said: “This hybrid response will cause widespread confusion and delays to access to justice for Joe Public.

“The Government’s response is borne out of desperation to be seen to be doing something, while maintaining the Labour Party income stream which derives largely from unions that refer workplace injury and disease claims to claimant lawyers.”

If ministers had bowed to lobbying from claimant lawyers and trade unions, it had done a disservice to people injured in the workplace, he added. Such claims took two years on average to settle, against original reform proposals for a time-frame of 60 days.

The details of the faster procedure for road accident claims were outlined by Bridget Prentice, MP, Minister for Civil Justice, as she published responses to a consultation paper, Case Track Limits and the Claims Process for Personal Injury Claims.

Ministers have also ruled out any change to the small claims limit, including for accident and housing disrepair claims, which remains at £1,000. All claims valued at below that will be handled in the small claims court.

Ms Prentice said: “If you have been injured in a traffic accident, you want any claim resolved as quickly as possible. This new process encourages people to come to a quick settlement and to resolve any issues without a lengthy court process.

“The Government remains of the view that increasing the small claims limits would deny claimants access to appropriate legal advice to assist them with their claims.”

The so-called fast track for more complex cases will have increased limit up from £15,000 to £25,000.

The Association of Personal Injury Lawyers (Apil) welcomed the quicker claims system as well as the holding of the small claims limit at £1,000. It had feared that if the limit were raised, people would be forced to bring complex cases on their own in the small claims court, facing lawyers employed by insurance companies.

However, Apil said it was disappointed that ministers had not opted for a statutory requirement to offer rehabilitation. It was also concerned that the higher limit for fast-track cases would draw in some of the difficult and complex claims that should go up to the next level, the so-called multi-track system. “Complexity and not just the value of a claim should be considered,” it said.

Henry Bermingham, president of the Forum of Insurance Lawyers, said the proposals were a “missed opportunity” in a personal injury system that was “crying out for reform”.

The Ministry of Justice had ignored injury claims that involve employers’ liability and public liability, which together imposed a “massive burden on Britain plc and Municipal Britain plc”, he said.

John Campbell, legal director of the National Accident Helpline, welcomed the recognition that injury cases involving employers or public liability were “significantly more complex” and should stay outside the small claims system.

Such accident victims should “have their own legal advice and support at the very start of the claims process”, he said.

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