With the personal injury climate on the cusp of change most people are not aware of what lies ahead.
Last year Lord Chancellor George Osborne revealed Government plans to prevent many of those who suffer soft tissue injuries in road traffic accidents, from receiving any compensation for their injuries. He also revealed proposals for the Small Claims Court limit, for all injury claims, to increase from £1000 to £5000.
During the recent Association of Personal Injury Lawyers (APIL) conference justice minister Lord Faulks indicated that these plans will still go ahead.
So how will these proposed changes affect you if you have suffered personal injury?
First and foremost if you have suffered whiplash injuries which can include painful neck and back symptoms you will receive absolutely NO compensation beyond reimbursement of expenses such as loss of earnings.
For other injuries with a likely value of less than £5000 you will likely have two options, to claim yourself without a solicitor’s aid, or cover your own legal fees. This means you would be at risk of losing much of your award in legal fees. At the moment most fees are covered by the opponent’s insurer.
What category would my case fall into?
The majority of personal claims have an injury value of under £5000. Examples of such injuries are fractured ribs, neck or back injuries lasting up to 12 months, or minor wrist fractures.
Why has the government introduced these changes?
It is a fact that the reforms aid insurers by reducing the cost of claims. The government claims that they will help consumers by reducing what they say is an epidemic of ‘fraudulent claims’ made through ‘cold calling and other social nuisances’. These changes will stop those who try to cheat the system, forcing up the price of motor insurance. Meaning your insurance premiums would likely reduce by £50 to £60 per year, this being the estimated amount that fraud costs policyholders. However the same claim was made when changes in the system were implemented in 2013. There is no independent evidence to back up claims of mass fraud, or that these changes will do anything other than put money into the pockets of insurance companies.
For a summary of the government’s position and commentary see the link below.
What to do next
Whether you agree with these changes or not, if you have suffered an injury and are thinking about making a claim, do so NOW before these changes come in. You will be in a much stronger position than if you wait.
