Justice Committee to review new personal injury claims limits

22/12/2017

The Justice Committee plans to launch an inquiry into the government’s proposal to raise the threshold for personal injury compensation claims.

The announcement follows a government declaration earlier this year (see our news article dated 26.07.17) in which it stated its intention to raise the limit for whiplash claims from road traffic accidents from £1,000 to £5,000. Compensation claims for more general accidents is also set to double from £1,000 to £2,000.

The proposals, which are being pushed forward under the Prisons and Courts Bill, have been opposed by many personal injury solicitors who believe it will prevent access to justice for people injured through no fault of their own. Lawyers claim that victims of non fault accidents will be put off pursuing a claim for compensation if they’re required to pay their own legal fees for damages awards valued below the new claim limits.

The government’s view is that the new legislation will reduce the number of compensation pay outs in a bid to crack down on fraudulent claims and end what it calls the ‘compensation culture epidemic’.

The inquiry will look into the impact of the increases, given the planned move towards online court procedures as well as how it will affect claims management companies and the market for ‘before the event’ legal expenses insurance. It will publish its findings in 2018.