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09 June 2020
Categories: Legal News , Personal injury , Insurance / reinsurance , ADR
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Insurer whiplash incentives questioned

The government’s U-turn on ADR (alternative dispute resolution) in the small claims portal will give insurers an incentive to deny liability for whiplash claims, an MP has claimed

Hammersmith MP Andy Slaughter put the question to the Justice Secretary in a written question in the House of Commons this week. Ministers revealed in February that the government was dropping plans to include an option for ADR where liability is disputed, in its whiplash reforms, now due to come into force in April 2021.

 

Justice minister Alex Chalk MP, answering on behalf of the government, said: ‘Generally, the online whiplash claims service is being designed to be simple and easy to operate for all users.

‘Once we resume work on the whiplash reform programme, the government will continue its work with the Civil Procedure Rule Committee on new and revised rules, pre-action protocol and practice direction to underpin the reforms and the system. This will include consideration of incentives and controls for all users of the online claims service where it is appropriate to do so.

‘Currently, motor insurers accept liability for damages in the majority of whiplash claims and we do not expect insurer behaviour to change after implementation.’

However, Qamar Anwar, managing director of First4Lawyers, questioned the government's decision to remove ADR from the whiplash claims portal: ‘It is a disgrace that the government is turning its back on a fundamental part of their proposals just because it is “difficult” to achieve.

‘The message is simple, try harder. The government seems intent on creating yet more “David v Goliath” inequality in the justice process by allowing innocent accident victims to fend for themselves against insurers.’

NLJ columnist Dominic Regan said that the Ministry of Justice decision to shelve ADR was ‘grotesquely contrary to the views of the judiciary.’ 

‘Three months ago Sir Geoffrey Vos wrote [in the introduction to The White Book, pxiii] that the time had come to think again about whether courts should be able to order parties to engage in ADR. Last year the Master of the Rolls spoke of the importance of meditation. In the space of eight days this spring two High Court Judges imposed swingeing penalties upon parties that had shunned ADR. The department has lost touch,i t appears,’ he added.

 

 

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