The government’s controversial whiplash reforms came into force this week, ushering in a new DIY digital portal for claims up to £5,000.
The changes, which the government said were geared to tackle ‘whiplash culture’, enable claimants to pursue small claims up to £5,000 (raised from a limit of £1,000) without using a lawyer. Legal costs are not recoverable. Fixed tariffs of compensation apply, depending on how long the claimant was affected, up to a two-year limit, and medical evidence must be obtained prior to any offer to settle.
The Ministry of Justice says the number of whiplash claims―there were 550,000 in 2019/20―is unacceptably high, and the reforms will lower insurance premiums by as much as £35 a year.
Dominic Clayden, chief executive of the Motor Insurers’ Bureau (MIB), which will operate the Official Injury Claim online claims portal, said: ‘MIB’s focus has always been about making sure the new legal process is as easy and straightforward as possible.’
The Lord Chancellor, Robert Buckland QC, said the changes would put an end to ‘greedy opportunism’ and put savings back into the pockets of drivers.
However, personal injury lawyers say the changes will benefit insurers at the expense of injured victims.
Qamar Anwar, managing director, First4Lawyers, said: ‘This is a sad day for justice.
‘All available data shows that the supposed whiplash culture is a fiction, yet the government has ploughed on regardless. While the government might sell these reforms as an opportunity for claimants to settle their claims quickly and without the need for court, the reality is quite different.
‘The introduction of a do-it-yourself online portal for claims worth up to £5,000 has been accompanied by a snappy 64-page user guide. How many claimants do they think will sift through 64 pages to guide them through their claim? Worse still, how will claimants know if their claim is worth more or less than £5,000?’
Kathryn Hart, partner, Lime Solicitors, said: ‘Three months whiplash injuries will garner you the sum of £240―increased to £260 if you have also had minor psychological injuries. By way of comparison, currently you would receive an award of up to £2,300.’
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