Thank you for contacting me about personal injury.
The number of whiplash claims has been too high for too long, and this is symptomatic of a wider compensation culture. I believe strongly that whiplash claims should not be an easy payday and money should be put back in the pockets of millions of law-abiding motorists.
In 2018 the insurance industry identified 55,000 motor insurance claims that it considered dishonest. The Government’s reforms seek to reduce and control the costs of whiplash claims and to disincentivise people making fraudulent or unmeritorious claims. The level of compensation paid out for such claims is, in the Government’s view, out of all proportion to any genuine injury suffered, especially when balanced against its effect on the price of premiums paid by ordinary motorists.
I welcome the measures being taken forward by the Government in this area. As you may be aware Ministers will increase the small claims track limit for road traffic accident related personal injury claims to £5,000. Measures will also introduce a fixed tariff of damages for pain, suffering and loss of amenity for whiplash injuries.
I agree that it remains important for those who have suffered to receive the compensation they need and deserve. The measures being taken forward to ban making or accepting offers to settle a whiplash claim without a medical report will help to ensure the right people receive the correct compensation.
You may also be pleased to hear that the Government estimates that these reforms will result in £1.1 billion savings for the insurance industry, and the industry has committed to pass on these savings to consumers. As a result, Ministers expect a reduction in motor insurance premiums of around £35 per policy on average. This is very positive news and I will continue to press the Government to ensure the industry delivers on that commitment.
Thank you again for taking the time to contact me.
Sally-Ann Hart MP