Government to Hold Fire on Further Whiplash Claims Reform

17 Oct 2016

It has recently been reported that the Ministry of Justice has set aside plans which had previously been proposed for a further major overhaul of the personal injury sector.

Last year the government announced significant further reforms to relate to personal injury claims, including abolishing the compensation for soft tissue injuries and raising the small claims limit (for such claims) to £5,000.00. This previous announcement had itself been on the back of a string of significant reforms to the sector since April 2013.

However it is understood that the government have now shelved such proposals and decided not to proceed with the same for the time being.

The Ministry of Justice has still insisted that it remains committed to reducing the number and cost of whiplash claims and that fresh proposals are currently being worked on, which could be introduced before the end of the year.

James Braund, specialist personal injury and clinical negligence Senior Associate, in Trethowans LLP’s Poole Office in Dorset states that “Whilst it seems that the previous proposals to scrap whiplash claims and raise the small claims limit for personal injury claims have been put on hold, at least for the time being (particularly while the government appears to have enough on its plate with the various legal issues which will inevitably surround Brexit), the Ministry of Justice are insisting that further reforms will still take place. The key issue seems to be the exact form such reforms will take and the extent and detail of the same”.