Whiplash Reforms Summary
The Governments introduction of the Whiplash Reforms or the Civil Liability Act, with effect from May 2021 will increase the small claims limit and severely restrict the recovery of cash compensation for soft tissue injuries.
The whiplash reforms Act is designed to disincentivise minor, exaggerated and fraudulent Road Traffic Accident related whiplash claims by:
a. the introduction of a tariff of fixed compensation for pain, suffering and loss of amenity for claims with an injury duration of up to 24 months;
b. providing the judiciary with the facility to both decrease the amount awarded under the tariff in cases where there may be contributory negligence or to increase the award (with increases capped at no more than 20%) in exceptional circumstances;
c. introducing a ban on both the offering, payment and requesting of offers to settle claims without medical evidence;
d. increasing the small claims limit for RTA related personal injury claims to £5,000, and just £2,000 for all other types of personal injury. The changes were made effective from Monday 31st May 2021.
There is no two ways about what these whiplash reforms mean for injured claimants, and that's less compensation if you can be bothered to claim. Solicitors and law firms have also been cut out of the food chain, so the whiplash reforms are also not popular with them.
Defendant insurers will in theory save £1.1b from the reforms, meaning our motor premiums will / should reduce by £35-£50 per year. We shall see.