The Ministry of Justice (MoJ), has unveiled the Prisons and Courts Bill stating it would cover the way for the biggest overhaul of prisons in a generation and the delivery of a world-class court system.
The MOJ confirmed that there would be new fixed tariffs capping whiplash compensation pay-outs, and it also stated that there would be a ban on claims without medical evidence. With whiplash claims being over 50% higher than over a decade ago, this is a big problem for the government.
According to the MOJ this would help crack down on the compensation culture epidemic and cut car insurance premiums by around £40 a year.
For far too long lawyers have been defending a system riddled with exaggerated and fraudulent claims, due to the benefits and profits they gain from it. The UK’s roads are becoming safer yet whiplash style claims are rising. Therefore, a conclusion has been proposed that ‘’people want an insurance claims system that provides compensation and support to those who genuinely need it.’’The government closed its consultation on reform proposals on 6 January, with this news not being welcomed by all.
According to Access to Justice, which is lobbying against the government’s reforms, the changes will include a £5,000 whiplash small claims limit, £2,000 for all other personal injury claims and fixed general damages for whiplash claims.
Andrew Twambley, spokesperson for Access to Justice, said: “We are extremely disappointed that the government seems hell bent on removing the rights of ordinary people to gain redress for injuries that weren’t their fault. Increasing the small claims limit to £5,000 discriminates against ordinary people suffering whiplash injuries and will open the doors for claims management companies and cold callers to wreak further havoc on the market. The government has not even waited to issue a response to the consultation exercise, confirming that it is uninterested in due process and deaf to the serious concerns raised by legal firms, the judiciary and consumer groups.”