A new Practice Direction governing personal injury and damage-only civil litigation in the Northern Ireland High Court came into effect on 13 October 2026.

Practice Direction 4/2026 revokes and replaces the previous 2008 Practice Direction and Pre-Action Protocol, bringing the pre-action and litigation stages within a single framework. Importantly for insurers, its scope now expressly includes damage-only claims and introduces more detailed requirements around letters of claim, credit hire, disclosure, rehabilitation and the timing of proceedings.

Although framed as a statement of best practice, parties and insurers are expressly expected to comply with its requirements at both the pre-action and litigation stages. Non-compliance may result in costs sanctions and/or procedural penalties, including a stay of proceedings. Costs consequences may also arise where a party’s default results in an unreasonable adjournment of trial.

 

What has changed?

 

More detailed letters of claim

The information expected at the outset of a claim has increased significantly. Letters of claim should provide sufficient detail about the accident, injuries, financial losses and treatment to allow defendants and insurers to begin meaningful investigations and broadly assess the risk.

Defendants should acknowledge the letter of claim within 21 days, identify the relevant insurer and flag any significant omissions. In most cases, the defendant then has a maximum of three months from acknowledgement to investigate. If more time is required, the reasons, outstanding investigations and additional time required should be explained before that period expires.

 

A significant change for motor insurers

Damage-only claims now fall expressly within the Practice Direction, with substantial new detail around vehicle damage, credit hire and storage.

Where relevant and available, plaintiffs are expected to provide information covering matters such as repair and inspection dates, hire and storage agreements and invoices, total-loss and salvage information, additional drivers, VAT status and impecuniosity.

Where impecuniosity is alleged, supporting financial evidence should also be provided, including three months’ bank or building society statements, details of debts and outgoings and information about earnings.

For motor insurers, this should provide an earlier opportunity to scrutinise the basis and extent of vehicle-related losses, particularly credit hire claims.

 

Earlier and clearer liability decisions

A defendant’s response should make clear whether liability is admitted or denied. Where liability or causation is disputed, the reasons should be clearly explained, together with an indication of the facts upon which the defence is likely to rely.

The Practice Direction also strengthens the emphasis on early disclosure. A defendant denying liability or causation should provide material and relevant documents in its possession which would be likely to be discoverable, including any evidence of previous accidents involving the plaintiff upon which it intends to rely.

The practical message for insurers is clear: liability investigations and evidence gathering will need to begin early.

 

Proceedings should not be issued prematurely

The Practice Direction seeks to give defendants a proper opportunity to investigate before proceedings are commenced.

Unless limitation or another issue requires earlier proceedings:

• where liability is denied, proceedings should generally not be issued until at least four months after acknowledgement of the letter of claim; and
• where liability is admitted, proceedings should generally not be issued until 28 days after the plaintiff has provided the relevant medical evidence and details of past and future losses.

The court may impose costs or procedural penalties for non-compliance, including a stay of proceedings in appropriate circumstances.

 

Standstill agreements

Where limitation is approaching, the parties are encouraged to consider whether a standstill agreement is appropriate. This can allow investigation or negotiations to continue without the need for protective proceedings, although neither party can be compelled to enter into an agreement.

 

Rehabilitation and interim payments move up the agenda

The parties are encouraged to explore rehabilitation at an early stage, without prejudice to liability, and to consider negotiation or other forms of alternative dispute resolution before proceedings become necessary.

Where liability is not in issue, insurers should also consider whether an interim payment is appropriate, particularly in serious injury cases or where medical evidence will take time to complete.

 

What should insurers do now?

The Practice Direction places greater emphasis on early investigation and meaningful pre-action engagement. Claims handlers should:

• diary the 21-day acknowledgement and three-month investigation periods;
• identify significant omissions in letters of claim immediately;
• front-load liability and causation investigations;
• expect fuller documentation in damage-only, credit hire and storage claims;
• identify and preserve relevant defence evidence at an early stage;
• give clear reasons and provide relevant supporting documents when denying liability or causation;
• consider rehabilitation, interim payments and ADR earlier;
• monitor limitation and consider standstill agreements where appropriate; and
• be alert to the restrictions on premature issue of proceedings.

 

 The bottom line

Practice Direction 4/2026 represents a move towards a more front-loaded and transparent approach to High Court personal injury and damage-only litigation in Northern Ireland. For insurers, the key message is straightforward: investigate earlier, identify missing information quickly and put the evidence supporting the defence on the table sooner. Done properly, the new framework should give insurers a better opportunity to assess liability and quantum, identify claims capable of early resolution and focus resources on the issues genuinely in dispute.

 

   

Orla McElroy | Director   Natasha Runciman | Associate Solicitor

 

For legal guidance and advice regarding these changes, please contact  Orla McElroy,  Natasha Runciman or any member of our Dispute Resolution Team for more information

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.