Will New Whiplash Reforms Cost Claimant Lawyers as much as £80m?

According to Legal Futures, at the reveal of the Ministry of Justices’ IA the government claimed that it is possible that “whiplash reforms could cost claimant lawyers £80m in lost fees in a year.” The IA connected this loss to a curtailment in the amount of work solicitors will be receiving. They claimed the solution to this would be for claimant lawyers to use that extra time to explore different avenues. On top of this, many claimant lawyers claimed that this is not true in a legal market that already has a high population.  Furthermore, the AI did consider excluding smaller businesses from these changes. The Ministry or government claimed that this would make it lose its purpose.  Of course. this is because many firms fall into this category of business.

Nationwide Accident Claim Changes: Can Lawyers Benefit from these Whiplash Reforms?

The IA proposed that there be possible positives for claimant lawyers arising from these changes to the nationwide accident claim system by the government claiming that the income from legal fees may actually increase as a result of these crackdowns on whiplash claims. This is if “insurers content more cases after the reforms.”

Other Controversies and Opinions Surrounding Whiplash Reforms

Proposed changes to the nationwide accident claim have been attracting backlash from the start that goes beyond claimant lawyers’ fees. To be more specific,  some of them include:

  • Changes to the nationwide accident claim system will make it harder for real claimants to access the justice they deserve

Many have claimed that the intention of the government implementing this of preventing fraudulent claims may not hit the target. Of course, this is because  it may over-extend itself into the area of legitimate claims. Thereby, these reforms may hinder claimant's ability to access the justice they so rightly deserve. In a Road CC report, it is said, “British Cycling.. point out that the proposed changes will leave cyclists and pedestrians with legal bills if they need to make a claim that’s under £5,000. Around 70 percent of cyclists’ compensation claims are for less than this.

  • Whiplash reforms will not decrease car insurance costs

The Telegraph proposed that the whiplash reforms may not decrease car insurance costs. They reported the head of the RAC, Mark Godfrey. claimed that he was positive to hear about the whiplash reforms. Although, he was not entirely positive and did voice some mild concern; "But It’s worth remembering that the savings from tackling bogus whiplash claims are all but wiped out following changes to the discount rate…”

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