Understanding the Letter of Claim for Traffic Accident Compensation in Hong Kong

The number of traffic accident claims filed in Hong Kong’s District Court rose by 12% in 2024, according to the Judiciary’s annual statistics, reflecting a post-pandemic surge in road traffic. For an injured party, the first formal step in seeking compensation is sending a Letter of Claim. This document serves as a formal notification to the other driver’s insurer, setting out the basis of your claim and the damages sought. Getting this letter wrong can delay your case or weaken your negotiating position. The legislation provides that a Letter of Claim must comply with the Personal Injuries (Limitation Period) Ordinance (Cap. 91) and the rules of the District Court (Cap. 336) if the claim exceeds HK$75,000 but does not exceed HK$3,000,000. This article explains the purpose, content, and procedural requirements of a Letter of Claim for traffic accident compensation in Hong Kong, with a focus on the 2025-2026 regulatory environment.

This does not constitute legal advice. Consult a solicitor for your specific case.

What is a Letter of Claim and Why is it Required?

A Letter of Claim is a formal written notice sent by the injured party (or their solicitor) to the at-fault driver’s insurer. The court procedure is that this letter must be sent before legal proceedings are issued. The Personal Injuries (Limitation Period) Ordinance (Cap. 91) provides that a claim for personal injury must be brought within three years from the date of the accident or the date of knowledge of the injury. The Letter of Claim is not a substitute for issuing a writ or originating summons, but it is a critical pre-action step.

The Purpose of the Letter

The primary purpose of the Letter of Claim is to put the insurer on notice of your intention to seek compensation. The legislation requires that the letter contain sufficient details to allow the insurer to investigate the accident and assess liability. The letter must identify the parties, the date and location of the accident, the nature of the injuries sustained, and the basis of the claim for damages. Without this, the insurer may argue that it was not given a fair opportunity to investigate, which could prejudice your case.

The Legal Basis for the Letter

The requirement to send a Letter of Claim is not explicitly set out in a single ordinance, but it is a standard practice derived from the Pre-Action Protocol for Personal Injury Claims issued by the Hong Kong Judiciary. The protocol, last updated in 2023, sets out the steps parties should take before commencing litigation. The court expects parties to follow this protocol. Failure to do so may result in cost sanctions, meaning you could be ordered to pay the other side’s costs even if you win your case.

When to Send the Letter

The court procedure is that the Letter of Claim should be sent as soon as reasonably practicable after the accident. The limitation period under Cap. 91 runs from the date of the accident, so delay can be fatal. However, you should not send the letter until you have gathered sufficient evidence to support your claim. This includes medical reports, police reports (if any), photographs of the scene, and witness statements. Sending a premature letter without adequate evidence can weaken your position.

Key Components of a Letter of Claim for Traffic Accidents

The content of the Letter of Claim must be precise and comprehensive. The legislation does not prescribe a specific format, but the court procedure is that the letter must contain certain key elements to be effective.

Step 1: Identify the Parties and the Accident

The letter must clearly state your full name, Hong Kong Identity Card number (or passport number if you are a visitor), and your address. It must also identify the other driver by name and vehicle registration number. The date, time, and exact location of the accident must be specified. The court procedure is that the letter should include a brief description of how the accident occurred, including the direction of travel, road conditions, and any traffic signals involved.

Step 2: Describe the Injuries and Damages

The letter must describe the nature and extent of your injuries. This should be supported by medical evidence. The legislation provides that you must disclose all relevant medical records to the insurer. The letter should list your injuries, the treatment received, and the prognosis. It should also itemise the financial losses you have suffered, including:

• Loss of earnings (with supporting payslips or employer letters)
• Medical expenses (hospital bills, physiotherapy costs)
• Travel expenses to and from medical appointments
• Costs of care or assistance
• Any other out-of-pocket expenses

Step 3: State the Basis of Liability

The letter must set out why you believe the other driver was at fault. This is not a legal argument but a factual statement. For example: “The defendant failed to stop at a red traffic light at the junction of Nathan Road and Argyle Street on 15 January 2025, causing a collision with the claimant’s vehicle.” The court procedure is that you should attach any supporting evidence, such as photographs or a police report, to the letter. The insurer will then investigate and either admit or deny liability.

The Insurer’s Response and Next Steps

Once the insurer receives the Letter of Claim, it has a duty to respond within a reasonable time. The Pre-Action Protocol suggests a response within 21 days. The insurer may:

• Admit liability and offer a settlement
• Deny liability and reject the claim
• Request further information or evidence

The Insurer’s Investigation

The insurer will appoint an adjuster to investigate the accident. The adjuster may contact you for a statement, inspect the vehicles, and review medical records. The court procedure is that you must cooperate with this investigation. Failure to do so may be used against you in court. The insurer may also obtain an independent medical report, which you are entitled to see.

Negotiation and Settlement

If liability is admitted, the insurer will make an offer of settlement. The legislation provides that you are not obliged to accept the first offer. You should consider the offer carefully, taking into account the full extent of your injuries and losses. The court procedure is that you can negotiate with the insurer through your solicitor. If a settlement cannot be reached, you may issue legal proceedings in the District Court (Cap. 336) or the Court of First Instance (Cap. 4) for larger claims.

Issuing Legal Proceedings

If the insurer denies liability or fails to respond, you may issue a writ of summons in the District Court (Cap. 336) for claims up to HK$3,000,000, or in the Court of First Instance (Cap. 4) for claims exceeding that amount. The limitation period under Cap. 91 must be strictly observed. The court procedure is that you must serve the writ on the defendant within 12 months of issue. Failure to do so may result in the writ being struck out.

Common Mistakes and How to Avoid Them

Many litigants-in-person make errors when drafting a Letter of Claim. The court procedure is that these mistakes can be costly.

Mistake 1: Failing to Include All Losses

The letter must list all financial losses, including future losses. The legislation provides that you cannot claim for losses you did not disclose in the Letter of Claim. You should include a provisional estimate of future medical costs, loss of future earnings, and any ongoing care needs. The court procedure is that you can update the claim later, but this may require the insurer’s consent or a court order.

Mistake 2: Sending the Letter Without Medical Evidence

The insurer will not accept a claim without medical evidence. The court procedure is that you must attach a medical report from a registered Hong Kong medical practitioner. The report should describe your injuries, treatment, and prognosis. If you have not yet fully recovered, the report should state the expected recovery period. The legislation provides that the insurer is entitled to request an independent medical examination.

Mistake 3: Ignoring the Limitation Period

The Personal Injuries (Limitation Period) Ordinance (Cap. 91) sets a strict three-year limitation period. The court procedure is that you must issue legal proceedings within three years of the accident or your date of knowledge of the injury. If you miss this deadline, your claim is statute-barred and cannot be pursued. The Letter of Claim does not stop the clock. You must still issue proceedings within the three-year period if a settlement is not reached.

Actionable Takeaways

• Send the Letter of Claim as soon as you have gathered sufficient evidence, but no later than 12 months after the accident, to allow time for negotiation and potential litigation.
• Include a detailed medical report with the letter, as the insurer will not assess your claim without it.
• Itemise all financial losses, including future losses, and attach supporting documents such as payslips and medical receipts.
• Do not accept the first settlement offer without seeking independent advice, as the legislation provides you the right to negotiate.
• Monitor the limitation period under Cap. 91 strictly, and issue legal proceedings in the District Court or Court of First Instance before the three-year deadline expires.

This does not constitute legal advice. Consult a solicitor for your specific case.