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.’
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