Market Affairs Group
It's been a busy week for the Ministry of Justice (“MOJ”).
On 23 February 2017 they issued Part 1 of their response to the whiplash consultation and confirmed plans to introduce a tariff for whiplash injuries up to 24 months in duration, a ban on pre-med offers in whiplash claims, a rise in the small claims track for RTA matters to £5k and £2k for other injury claims. The Prisons and Courts Bill, which will be the enabling bill for these reforms and the Briggs on-line court was also introduced to parliament for debate.
This flurry of activity was followed by the bombshell that the discount rate in personal injury claims would be reduced from 2.5% to -0.75% prompting reports that insurers will see their claims spend by circa £4.5b and see premiums rise by at least £50-70 for all motorists (£1000 for 18-22 year olds and £300 for the over 65s), wiping out any benefit derived from the whiplash reforms.
We are working with clients and our contacts in government to understand the rationale behind these changes and will be lobbying to ensure the best possible outcome.
If you have any queries please don't hesitate to contact us via the "ask a question" button.