header-logo header-logo

Insurer whiplash incentives questioned

09 June 2020
Categories: Legal News , Personal injury , Insurance / reinsurance , ADR
printer mail-detail
The government’s U-turn on ADR (alternative dispute resolution) in the small claims portal will give insurers an incentive to deny liability for whiplash claims, an MP has claimed

Hammersmith MP Andy Slaughter put the question to the Justice Secretary in a written question in the House of Commons this week. Ministers revealed in February that the government was dropping plans to include an option for ADR where liability is disputed, in its whiplash reforms, now due to come into force in April 2021.

 

Justice minister Alex Chalk MP, answering on behalf of the government, said: ‘Generally, the online whiplash claims service is being designed to be simple and easy to operate for all users.

‘Once we resume work on the whiplash reform programme, the government will continue its work with the Civil Procedure Rule Committee on new and revised rules, pre-action protocol and practice direction to underpin the reforms and the system. This will include consideration of incentives and controls for all users of the online claims service where it is appropriate to do so.

‘Currently, motor insurers accept liability for damages in the majority of whiplash claims and we do not expect insurer behaviour to change after implementation.’

However, Qamar Anwar, managing director of First4Lawyers, questioned the government's decision to remove ADR from the whiplash claims portal: ‘It is a disgrace that the government is turning its back on a fundamental part of their proposals just because it is “difficult” to achieve.

‘The message is simple, try harder. The government seems intent on creating yet more “David v Goliath” inequality in the justice process by allowing innocent accident victims to fend for themselves against insurers.’

NLJ columnist Dominic Regan said that the Ministry of Justice decision to shelve ADR was ‘grotesquely contrary to the views of the judiciary.’ 

‘Three months ago Sir Geoffrey Vos wrote [in the introduction to The White Book, pxiii] that the time had come to think again about whether courts should be able to order parties to engage in ADR. Last year the Master of the Rolls spoke of the importance of meditation. In the space of eight days this spring two High Court Judges imposed swingeing penalties upon parties that had shunned ADR. The department has lost touch,i t appears,’ he added.

 

 

MOVERS & SHAKERS

DWF—Ed Williams

DWF—Ed Williams

Public sector disputes capability bolstered by partner hire in Leeds

Blake Morgan—Scott Hilton, Joan Yu & Melia Hirst

Blake Morgan—Scott Hilton, Joan Yu & Melia Hirst

Firm strengthens corporate, real estate and insolvency teams with partner trio

Seddons GSC—David Seal & Emma Clifford

Seddons GSC—David Seal & Emma Clifford

Consultant and solicitor join commercial real estate team

NEWS
Judging is ‘more intellectually demanding than any other role in public life’—and far messier than outsiders imagine. Writing in NLJ this week, Professor Graham Zellick KC reflects on decades spent wrestling with unclear legislation, fragile precedent and human fallibility
The long-predicted death of the billable hour may finally be here—and this time, it’s armed with a scythe. In a sweeping critique of time-based billing, Ian McDougall, president of the LexisNexis Rule of Law Foundation, argues in this week's NLJ that artificial intelligence has made hourly charging ‘intellectually, commercially and ethically indefensible’
From fake authorities to rent reform, the civil courts have had a busy start to 2026. In his latest 'Civil way' column for NLJ this week, Stephen Gold surveys a procedural landscape where guidance, discretion and discipline are all under strain
Fact-finding hearings remain a fault line in private family law. Writing in NLJ this week, Victoria Rylatt and Robyn Laye of Anthony Gold Solicitors analyse recent appeals exposing the dangers of rushed or fragmented findings
As the Winter Olympics open in Milan and Cortina, legal disputes are once again being resolved almost as fast as the athletes compete. Writing in NLJ this week, Professor Ian Blackshaw of Valloni Attorneys examines the Court of Arbitration for Sport’s (CAS's) ad hoc divisions, which can decide cases within 24 hours
back-to-top-scroll