Mediation Reforms, how will this impact you?

On 28 July 2025 the Ministry of Justice introduced reforms to the claims management process of the Online Civil Money Claims (OCMC) service and the Damages Claims Portal (DCP). The purpose of the changes is to trial a 12-month period in which mediation becomes a compulsory element of the claims settlement negotiations for defended claims valued below £10,000.

The £10,000 claim threshold includes motor damage provided liability is disputed. This process does not apply to any claims involving personal injury claims and will not apply to any claim in which an admission of liability is made on the portal.

How the OCMC process works

Claims are submitted to the OCMC Portal by the claimant, and this process remains unaltered as you are still entitled to 28 days to conduct liability investigations. Following completion of the claims investigation, your claims representative will file the Defence on the portal.

Once the Defence is filed an automatic referral to Mediation will be issued to involved parties. The Mediation appointment will be scheduled, typically, within 28 days from the date of the Defence, and will involve representatives of both parties attending a remote shuttle call. The shuttle call process involves both parties being on separate telephone lines, connected to the Mediator who will liaise with both parties in an attempt to negotiate a claims settlement.

It is important to note that you do not need to attend the mediation yourself, your legal representatives can act on your behalf. It is however important that you work closely with your legal team to ensure that they are fully briefed on the details of the case, and your settlement parameters, to allow for meaningful negotiations.

Benefits of the OCMC Reforms

The changes to the claims management process contain some positive features:

• There is no court fee, meaning if settlement is agreed during the mediation the claim will not be subject to increased legal and court fees.
• If settlement is agreed during the mediation, the agreement can be drafted by the mediator and issued to involved parties which will reduce the timeline of the claim.
• Early indications suggest that settlement rates are around 35% and increasing as legal firms become more capable when dealing under this new system.

Implications of the compulsory Mediation

• Mediation is now a compulsory process of the OCMC portal, and attendance by you/your representative is essential. Failure to comply with this may be classed as unreasonable conduct and will likely have consequences if the case proceeds to Trial.
• If the Mediation fails to achieve an agreed settlement, the case will proceed to a small claims hearing to determine the outcome of the claim.
• As the reforms have only recently come into effect, there is no clear data regarding the effectiveness of this process in handling more complex cases, for example, those involving credit hire or where allegations of fraudulent activity have been raised.

What actions should you take on receipt of a claim?

As soon as you are notified of a claim submitted via the OCMC, early engagement with your insurers is crucial to allow adequate time for liability assessments to be carried out. Ensure you appoint a legal firm to assist with the handling of the case, who will assist you with the OCMC and Mediation process.

For further information and support, please get in touch.