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

EIP—Stuart Malcolm

EIP—Stuart Malcolm

EIP strengthens Commercial practice with a new partner

Ellisons—Francesca Brown

Ellisons—Francesca Brown

Ellisons welcomes Francesca Brown to Family team

Shakespeare Martineau—Marie Bourke

Shakespeare Martineau—Marie Bourke

Shakespeare Martineau strengthens Sheffield regulatory practice with new hires

NEWS
A wide-ranging Civil Way column highlights developments from insolvency procedure to employment law, but one case stands out for its lessons on bankruptcy, family homes and digital communications
A sprawling Intellectual Property Office battle between House of Fraser and Frasers Property has delivered a masterclass in modern trade mark law
Courts in England and Wales and Singapore are increasingly confronting complex disputes over international child relocation as families become more globally mobile
The government’s long-awaited family law reform consultation could mark a turning point for domestic abuse victims navigating financial remedy proceedings, but significant challenges remain
A new commercial court pilot giving the public access to documents used in hearings, including expert reports, is raising difficult questions about transparency and privacy
back-to-top-scroll