Last updated on March 15th, 2017 at 12:06 pm
Small claims limit for road traffic accident whiplash £5k from Oct 18
Despite months of lobbying by solicitors and the public, the government has announced its intention to increase the small claims limit to £5,000, but only for RTA personal injury claims – including whiplash – from 1 October 2018. This means that after that date, claimants will be expected to represent themselves against insurers.
Other small claims limit £2k
However, in a move that is a deviation from the original proposal to increase the small claims limit across the board in relation to personal injury claims, the Ministry of Justice has announced that for all other types of claim, the limit will be £2,000.
You can read some about some of the cases in which we have helped clients win compensation for non RTA soft tissue injuries in the personal injury section of news on our website. Some highlights are here:
Man injured whilst out jogging
Back injury caused by faulty chair
Whiplash tariff
The government will also push through a tariff for whiplash claims (defined in the bill as the neck or the neck and upper torso), as well as ban the settlement of claims without medical evidence. The legislation is held within the Prisons and Courts Bill, which had its first reading in the House of Commons on 23rd February 2017. The tariffs, which cover whiplash and minor psychological claims such as travel anxiety and shock, will be:
- £225 for injures lasting up to three months
- £450 for injuries lasting up to six months
- £765 for injuries lasting up to nine months
- £1,190 for injuries lasting up to a year
- £1,820 for injuries lasting up to 15 months
- £2,660 where the injury lasts up to 18 months
- £3,725 where the injury lasts up to two years
Lower insurance premiums in question
Belinda Lancaster
RTA claims have been blamed for the increasing rising cost of motor insurance, with Justice minister, Sir Oliver Heald, saying “We are determined to get a grip on the widespread compensation culture that unfairly impacts millions of motorists through higher premiums.” The government has said that it expects the insurance industry to cut car insurance premiums by around £40 a year, but this has now been put into question by the Lord Chancellor and Secretary of State, Liz Truss’, cut in the ‘discount rate’ (the rate of interest a person is expected to earn on the amount of compensation they get by investing it) from 2.5% to -0.75%: a move that the insurance industry says is ‘crazy’ in will significantly push up motor insurance premiums.
If you want to make a claim for injuries you have received in a motoring accident, or any other type of accident, please contact our experts now. We will arrange a free of charge meeting in which we can discuss your matter and discuss what the best way forward will be.
You can find out more about road traffic accidents on our web pages.
