From 1 January 2002, all non-injury motor accident claims must comply with the Practice Direction 2 of 2001.
The new Practice Direction applies to non-injury cases only. Injury cases should continue to observe the requirements of pre-action notices to the defendant's insurers under the Motor Vehicles (Third Party Risk and Compensation) Act, Cap 189.
The Practice Direction is introduced to improve efficiency and cost-effectiveness of non-injury motor accident cases. It promotes pre-action settlement, simplifies the litigation process and allows certainty, consistency and transparency of the litigation costs.
Promoting Pre-Action Settlement
Prior to commencement of the proceedings, the claimant (or his lawyer) is required to send a letter of claim each to the potential defendant by way of certificate of posting and his insurer by way of AR Registered mail or by hand. The letter of claim must set out the full particulars of his claim together with the following supporting