Justice Secretary Liz Truss promises car insurance premiums will fall as part of a Government crackdown on compensation culture. The Justice Secretary has out a consultation paper outlining plans to put a cap on compensation awards, or even ban whiplash claims altogether.
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. In essence, the government wants to counter claims that the UK is the ‘whiplash capital of the world’ amongst nations.
Road traffic accident claims have nearly tripled since 2006, rising to 770,000 in 2015. The average payout per claim in 2015 was £1,850.
Reasons for the whiplash claims crackdown
George Osborne made note of 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 Osborne’s. Accordingly, they will include a cap on the payments for more serious whiplash injuries. Claims will now:
- top out 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.
The Tories, in essence, don’t want small claims court to fill up with for personal injuries from £1,000 to £5,000. However, the consequence may well be that victims of genuine injury cannot seek redress. In effect, victims will be unable to afford the legal help they need to do so.
In a bid to tackle so-called ‘compensation culture’, we here at The Compensation Experts wonder. Is the Government removing the right of genuine claimants to seek justice and compensation from negligent drivers? All in order to just save car insurers money?
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