The Ministry of Defence (MoD) has awarded insurance specialists Keoghs and BLM contracts worth a combined total of £10 million.

The two firms will litigate for the MoD on a wide range of compensation claims put forward by MoD personnel and civilians, including road traffic accidents, injuries in training exercises or from faulty equipment, as well as stress and harassment claims.

The MoD has said that certain, more "sensitive" claims will be handled in-house along with other cases such as clinical negligence, military low-flying, and maritime or third-party motor collisions.

The contracts, awarded in May and published this month, run for four years until 2023, with the option for the MoD to extend the agreement by a further year. Keoghs will receive £6 million, while BLM will receive £4 million across the same period.

Both firms won the contract as a "call-off" from the Crown Commercial Service's "wider public sector framework" legal panel.

BLM confirmed that it had been reappointed to the panel, which followed a few years' absence, according to a person with knowledge of the matter.

A spokesperson for BLM confirmed that the firm been working with the MoD over a period of 20 years, with partners Jo Francis, Mark Chetwood, Nik Stott, Tanya Cross, Mark Eisen and Vicky Mallard leading on litigation work for the MoD.

According to the contract published by the government, the MoD receives about 5,000 to 6,000 compensation claims every year. The largest claims area in terms of volume is for noise-induced hearing loss, while the most expensive category of claim is non-freezing cold injury.

Earlier this year, Gowling WLG won a four-year contract worth up to £2.9 million from the MoD, assisting on matters including how to use legal input to minimise costs and maximise efficiency.