A consultation has been launched into the whiplash claim process, potentially affecting thousands of people who have suffered an injury on the road.
Controversial proposals to reform the way in which insurance claims of this kind are dealt with were first mooted by former Chancellor George Osbourne in his 2015 Autumn Statement.
Mr Osbourne said insurers would be spared more than £1 billion in costs with the end of the right to cash compensation for minor whiplash claims.
However, last month, the Ministry of Justice announced that the idea was not a priority, with experts predicting that the scheme would be dropped.
But now it seems the plans are back on the table. Liz Truss, the Justice Secretary, has warned that the “rampant culture of compensation claims” is pushing up the premiums of millions of “law-abiding” motorists.
The consultation, open until 6 January, outlines plans to either ban minor whiplash claims outright or cap payments at £425.
The government and insurers say every motorist in England and Wales will see their premiums fall by £40 a year.
However, Simon Stanfield, Chairman of the Motor Accident Solicitors Society, of which Gotelee is a member, said the government’s proposals would fail to protect the interests of most claimants.
“We’re disappointed that they’re pressing ahead with this agenda, despite the mounting evidence of the negative unintended consequences,” he said.
“It is still not too late for the government to take stock and allow the industry to come forward with a fairer and more proportionate programme to tackle fraudulent claims.
“Past cross-industry initiatives have demonstrated that so much more can be achieved by dialogue. The sector should be given time to discuss areas of possible common agreement.”
How can our Personal Injury lawyers help?
If you have been involved in a road accident that was not your fault, you may be entitled to compensation for the injuries incurred. But given the potential change in the law, it is important to act now.
Our team of specialist Suffolk lawyers will be able to assess your claim quickly and advise whether or not you might be eligible for compensation.
To find out more about how we can help you, contact our Personal Injury team on 01473 298125. We also have offices in Ipswich, Hadleigh, Melton, Felixstowe and Woodbridge where you can arrange to meet with one of our specialist lawyers.