The MOJ Made Headline This Year With New Whiplash Claim Reforms.

In a bid “to crack down on the compensation culture epidemic” this announcement on 27 Feb revealed the reduction from the average amount of £1,850 to a maximum amount of £425. Additionally, they stated that personal injury compensation will only be paid out if there is a medical report provided. This will be effective as from 01 October 2018.

Legit Claims - Whiplash Claim Reforms News

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How Does This Affect the Law on Road Traffic Accidents?

This cap on small claims and payouts for whiplash injuries has come as a result of injury claims in the UK being 50% higher than a decade ago.  This is despite the fact that we have some of the safest roads in the EU. On top of that, declining motor accident statistics.

Legit Claims - Road Accidents

“For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists,” said Ministry of Justice Secretary Liz Truss. “These reforms will crack down on minor, exaggerated and fraudulent claims.”

As a result, millions of motorists could see their car insurance premiums reduced. The government said insurers have pledged to pass on the savings, worth about £40 a year.

More Proposed Measures

Other proposed measures include:

  • The introduction of a tariff system for personal injury compensation. With payments reserved for claims for more significant injuries than whiplash.
  • Reduced legal costs by enabling the small claims courts to handle all personal injury claims up to £5,000. Previously it was just £1,000.
  • Mandatory provision of medical reports from a MedCo accredited expert before any paid out claims.

Public Opinion on Personal Injury Compensation

The Association of British Insurers (ABI) welcomed the consultation, saying the proposals would “give honest motorists a better deal”.

Although Mark Godfrey, the director of the RAC, welcomed the plan he stressed the importance of not putting those who had true injury claims at risk.

Find personal injury claims solicitor’s nearby to assist you with your whiplash claim.