header-logo header-logo

15 February 2023
Issue: 8013 / Categories: Legal News , Personal injury , Damages , Insurance / reinsurance , Technology
printer mail-detail

Whiplash claims revisited

MPs have begun an inquiry into whether whiplash claims are being processed effectively following a series of reforms.

Personal injury lawyers campaigned against the reforms when they were announced in 2021, fearing claimants might be under-compensated and lose access to justice.

The reforms included fixed tariffs, a ban on claims without medical evidence, raising the small claims threshold from £1,000 to £5,000, and the online claims portal or Official Injury Claim Service. The aim was to halve the more than £2bn annual claims for whiplash, which insurers said added £90 to car insurance policies. Savings of between £40 and £50 per year were then to be passed on to motorists.

Sir Bob Neill, chair of the Justice Committee, said: ‘We want justice to prevail, but we want it to be efficient as well.’

The committee will ask why 90% of claimants continue to use lawyers when using the online portal, whether the portal is accessible, and whether it ensures access to justice. It will look at the effect the reforms have had on the number of minor personal injury claims to date, to what extent any savings are being passed on to motorists, and whether claims are being settled in a timely manner.

Andrew Wild, head of legal at First4InjuryClaims, said: ‘Road traffic accident claims have almost halved since 2018 but the promised savings for motorists have yet to materialise—insurance premiums have actually gone up.

‘The portal has been so poorly marketed and plagued with issues that motorists could be forgiven for giving up, particularly when the average settlement time currently stands at more than seven months.

‘An inquiry into the reforms has to be welcomed but, almost two years in, I hope this is not simply a box ticking exercise.’

Submit evidence to the inquiry by 5pm on 17 March.

MOVERS & SHAKERS

NLJ Career Profile: Stephen Ward, The Barrister Group

NLJ Career Profile: Stephen Ward, The Barrister Group

From mowing lawns to life at the Bar: Stephen Ward reflects on an unconventional career

Clarke Willmott—Ben Loosemore

Clarke Willmott—Ben Loosemore

Commercial property partner joins Clarke Willmott in Southampton

Ellisons—Robert Tiffen

Ellisons—Robert Tiffen

Robert Tiffen joins Ellisons as Partner in growing Norwich office

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

back-to-top-scroll