The Ministry of Justice’s Whiplash Reforms
Published On : 05 Aug 2021
The Ministry of Justice’s Whiplash Reforms
The reforms will apply to claims arising from a Road Traffic Accident (RTA) which occurs in England & Wales on or after 31 May 2021*. The headlines are:
• The introduction of a fixed tariff of compensation for whiplash injuries that last up to 2 years. This tariff will provide clarity and certainty to claimants about the amount of personal injury damages they will receive for whiplash injuries.
• A ban on settling whiplash claims without medical evidence. The Official Injury Claim service will enable claimants to source medical reports to ensure claims are supported by medical evidence before settlement.
•The introduction of the Official Injury Claim service which has been designed to provide claimants with an accessible & user-friendly digital system, supported by guidance. The service will enable all claimants, particularly those without legal representation, to make and settle their own claim.
• Increasing the Small Claims Track (SCT) limit for RTA related Personal Injury claims from £1,000 to £5,000 via amendments to the Civil Procedure Rules. This means that the majority of such claims will now proceed through the Small Claims Track, where legal costs are not recoverable.
What can you do to help your Insurer conform to the Whiplash Reforms and prevent claims costs from escalating?
The quicker you can notify your Insurer, the better. Early notification helps to ensure your Insurer works within the timeframes and rules set by the Ministry of Justice’s Pre-Action Protocol for low value personal injury road traffic accident claims, and the new Small Claims Track Protocol. The sooner your Insurer is notified of an accident, the sooner they can provide a response, get the claim moving and contain costs.
If your Insurer fails to provide your version of the incident and a signed Statement of Truth within 30 working days of receipt of a Small Claims Track Claim Form, your Insurer is deemed to have admitted liability in full. Clearly, you want to avoid this situation wherever possible in order to help protect your claims experience.
Using Insurers claims helplines are our recommended method of notification. There is usually little or no call waiting time for you, and generally, Insurers are able to gather all the information needed to make enquiries quickly if liability is contested.
The charts on the last two pages of this PDF illustrate the cost implications of delayed notification for both Official Injury Claims (OIC) Portal and the Ministry of Justice’s (MoJ) Portal.
