The Ministry of Justice (MoJ) laid draft statutory instruments last week showing the proposed fixed tariff compensation levels for soft tissue injuries in road traffic accident (RTA) claims, and requiring medical evidence before an offer to settle can be made. The small claims track limit will be raised from £1,000 to £5,000.
The tariffs are set on a sliding scale according to duration of injury, from £240 for three months or less to £1,320 for nine months to a year, £3,005 for 15-18 months and £4,215 for 18-24 months.
A further £20-£130 is added for minor psychological injuries, depending on duration of injury.
The Law Society’s head of justice, Richard Miller, said: ‘As expected, the compensation tariffs for whiplash have been set far lower than the Judicial College Guidelines currently allow.
‘Solicitors and other key stakeholders urgently need more detail on how the portal will work in practice so they can prepare for the changes. For example, more information is needed on how easy to use the court process will be for claimants if the insurer denies liability or if they want to challenge their level of compensation.’
Qamar Anwar, managing director, First4Lawyers, said it was encouraging that non-RTA claims will remain at £1,000, and the small claims limit for children and protected parties has been removed entirely. However, ‘the fundamental aspect of expecting the average consumer to represent themselves as a litigant in person remains unchanged, leaving vulnerable injured people to navigate a legal system they have no experience of or expertise in’.
Ian Davies, who leads the motor team at Kennedys, said the changes were ‘seismic’ and the market was ‘set for a frantic three months of development to ensure systems are in place’.
An MoJ spokesperson said: ‘Our reforms will save motorists money by limiting fraud and reducing excessive costs while simplifying the process for making claims.
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