The interim data from the DWP’s Compensation Recovery Unit obtained by the Association of Consumer Support Organisations (ACSO) has provided details of the injury compensation claims registered in 2020.
Newly registered personal injury claims fell 27% in 2020 compared to 2019. That’s a fall from 827,493 to 604,413 injury claims (excluding clinical negligence cases).
Contrary to what the insurance industry and newspapers would have you believe, the number of personal injury claims has been falling consistently since 2013, which is when the government introduced legislation to effectively reduce the compensation and legal costs payable by insurers in personal injury claims.
Between 2013 and 2020, injury claims had already dropped by 21%.
That will have represented a huge saving for the insurers over the last 8 years.
Then Covid-19 struck and the associated lockdowns and restrictions resulted in fewer accidents and, therefore, fewer injury claims needing to be made. The massive fall in accidents has of course been good news as fewer people have been injured and the NHS has been freed from the cost and resource of having to deal with all those injuries, allowing it to better focus on the pandemic.
However, this further fall in compensation claims means that the number of injury claims in 2020 is nearly half the number of compensation claims presented in 2013 (which was 1.048 million claims).
And yet, further reforms due to come in in May 2021 will see the compensation awarded for soft tissue injury motor claims (the vast majority of motor injury claims) slashed, with legal costs also only being payable by the insurer for the more severe injury claims.
This will result in yet further huge savings for the insurance industry.
The fall in motor accident claims alone is estimated to have saved the motor insurance industry £29bn. But the average cost of comprehensive motor insurance in the UK is currently 21% higher than it was in 2013.
So, has your motor insurance premium reduced in line with these savings? Does your motor insurer always provide a cheaper renewal quote? And will you receive as much compensation if you are injured in a motor accident due to another driver’s negligence?
The answer to each of those questions is almost certainly ‘no’. An insurer’s duty is to its shareholders; not its customers and certainly not to the people who make claims against it.
At Gotelee, our duty is to you, the injured claimant, so if you have been injured due to the negligence of someone else, don’t let the pandemic become a barrier to getting the support you need. We are open for business and can offer you a free remote initial consultation and we offer no win no fee representation for any case that we take on.
Call us on 01473 211121 or email [email protected] to make an appointment.