header-logo header-logo

Whiplash claims revisited

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

Slater Heelis—Oliver Banks

Slater Heelis—Oliver Banks

Manchester firm strengthens Court of Protection expertise with partner hire

Talbots Law—Sara Pickerin & Nicholas Playford

Talbots Law—Sara Pickerin & Nicholas Playford

Agricultural law team expands with senior director appointments

Kingsley Napley—Claire Green

Kingsley Napley—Claire Green

Firm announces appointment of chief legal officer

NEWS
Mazur v Charles Russell Speechlys [2025] EWHC 2341 (KB) has restated a fundamental truth, writes John Gould, chair of Russell-Cooke, in this week's NLJ: only authorised persons can conduct litigation. The decision sparked alarm, but Gould stresses it merely confirms the Legal Services Act 2007
The government’s decision to make the Financial Conduct Authority (FCA) the Single Professional Services Supervisor marks a watershed in the UK’s fight against money laundering, says Rebecca Hughes of Corker Binning in this week's NLJ. The FCA will now oversee 60,000 firms across legal and accountancy sectors—a massive expansion of remit that raises questions over resources and readiness 
The High Court's decision in Parfitt v Jones [2025] EWHC 1552 (Ch) provided a striking reminder of the need to instruct the right expert in retrospective capacity assessments, says Ann Stanyer of Wedlake Bell in NLJ this week
Paige Coulter of Quinn Emanuel reports on the UK’s first statutory definition of SLAPPs under the Economic Crime and Corporate Transparency Act 2023in NLJ this week
NLJ columnist Stephen Gold dives into the quirks of civil practice, from the Court of Appeal’s fierce defence of form N510 to fresh reminders about compliance and interest claims, in this week's Civil Way
back-to-top-scroll