The reforms would increase the small claims track limit to £5,000 (making costs unrecoverable for many more claims), introduce a fixed tariff of damages and ban the making or accepting of a settlement without a medical report. The start date had previously been extended to August 2020.
In a written statement to the Commons this week, Lord Chancellor Robert Buckland said: ‘It is apparent that the current COVID-19 pandemic has had an unprecedented impact on the medical, legal and insurance sectors.
‘As a result, the government… agrees that now is not the time to press ahead with significant transformational change.’
Association of Personal Injury Lawyers president Gordon Dalyell said: ‘Delay is welcome, but another arbitrary date for these reforms to be implemented is meaningless unless critical issues are addressed.
‘Without alternative dispute resolution the portal will leave unrepresented injured people in a very vulnerable position if liability or the value of the claim is disputed. Injured people will be expected instead to switch to the small claims track, which is simply not designed for these types of disputes. But before this could even be considered a viable solution, issues like the need for explicit permission from the court to allow expert evidence must be resolved.’
Law Society president Simon Davis said he welcomed the decision but would continue to ‘challenge the government to ensure the portal is fit for purpose and those with low-value road traffic injuries have access to justice.
‘There are still important policy decisions to be made about how the portal will work in practice, and solicitors―for both claimants and defendants―as well as the general public will need time to adapt to these changes.’
NLJ columnist Dominic Regan said: ‘The supreme irony is that insurers will see a slump in claims because hardly anyone is driving. There is much to do. Judges are very keen to see ADR as part of the reform package. Might it be resurrected? It should be.’
Anthony Baker, President of FOIL and Partner at Plexus said: ‘With the current UK wide lockdown it is welcome, albeit unsurprising news that the Government has announced that the Whiplash Reform Programme will be delayed from August 2020 to April 2021.
The pandemic has had an unprecedented impact on the insurance, legal, judicial and medico-legal sector and everyone’s priorities must lie in elsewhere in getting through this turbulent period. The industry will welcome this news and the delay will allow more time for the outstanding required work by the CPRC and MIB to be completed and for insurers and representatives to fully prepare operationally for the reforms within the Official Injury Portal.
The Lord Chancellor has confirmed that the Government is still committed to delivering the reforms which is again positive news at a time of such uncertainty.’
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