A controversial proposal to reform the way in which insurance claims for whiplash injuries are dealt with has been set aside by the government.
Former Chancellor George Osborne announced in his 2015 Autumn Statement that insurers would be spared more than £1 billion in costs with the end of the right to cash compensation for minor whiplash claims.
Motorists had been told their car insurance premiums would drop by as much as £50 a year after insurers promised to pass on any savings they made.
But the Ministry of Justice (MoJ) this week announced that the proposal is not a priority, with industry experts predicting that to be the death knell for the idea.
The Chancellor’s plan was to scrap the payment of general damages for minor injuries caused by road traffic accidents. Victims would still be eligible for compensation for loss of earnings after a smash and would also be offered treatment.
The government said the move would help reduce the number of exaggerated fraudulent claims, which it said were out of proportion to genuine injury suffered.
However, it now seems unlikely to be pursued.
The Motor Accident Solicitors Society, which Gotelee Solicitors are a proud member of, has welcomed the decision.
A spokesman said: “We are of course pleased that the MoJ are not pressing ahead immediately with its proposed package of damaging reforms that would have had a significant detrimental effect on the rights of the injured victims of motor accidents.
“However we must not allow this news to interfere with the work that is already under way to address some significant problems in our sector. Solicitors and insurers need to work together with government to address the scourge of fraud, prosecuting identified fraudsters and cracking down on cold calling.”
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.
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.