Justice Secretary Liz Truss has promised that car insurance premiums will fall as part of a Government crackdown on compensation culture. The Justice Secretary has published a consultation paper outlining plans to put a cap on compensation awards, or even ban whiplash claims altogether [http://www.telegraph.co.uk/news/2016/11/17/car-insurance-premiums-fall-by-40-a-year-under-plans-to-end-ramp/].
Whiplash claims are on the increase, with one made every minute in the UK. This has led to fears that a ‘cash for crash’ culture is developing, with the UK known as the ‘whiplash capital of the world’. Road traffic accident claims have nearly tripled in the last 10 years, rising to 770,000 in 2015. The average payout per claim was £1,850.
George Osborne had announced similar plans last year, before stepping down in the wake of the Brexit result and David Cameron’s resignation as PM. The Justice Secretary’s proposals go further than those proposed by Osborne and will include a cap on the payments for more serious whiplash injuries. Claims will now be pegged at £1,100 for injuries that take a year to recover from, and £3,500 for injuries of longer duration.
Ms Truss also plans to implement Osborne’s plans to raise the threshold at which the small claims court can be used for personal injuries from £1,000 to £5,000. However, the unintended consequence may well be that victims of genuine injury will be unable to seek redress as they will be unable to afford the legal help they need to do so.
In a bid to tackle so-called ‘compensation culture’, have the Government removed the right of genuine claimants to seek justice and compensation from negligent drivers, in order to save car insurers money?
If you need to make a road traffic accident claim for personal injury, please contact us today to discuss your no win, no fee claim.