Law Society warns whiplash reforms hit the wrong target

Law Society Chief Executive Desmond Hudson will today warn a committee of MPs that the Government’s proposals to prevent fraudulent whiplash claims hit the wrong target and risk access to justice for genuine accident victims.
He will tell the Transport Select Committee, who are analysing the plans, that the Government’s plans to raise the limit of the small claims track for personal injury claims, and proposals put forward by the insurance lobby to reduce the limitation period and lower damages are bad news for consumers.
Desmond Hudson said:
“The Government is making policy based on evidence that is almost a decade out of date. The most recent report from European insurance companies actually shows that claims made in the UK fell by 6%, while German insurers experienced an increase of 2% and in France claims remained stable.
“The vast majority of personal injury claims are genuine – the insurers admit as much. The Government’s proposals to raise the small claims limit, and pleading from insurers to reduce the limitation period for injury claims are bad for consumers and innocent accident victims while doing little to tackle the tiny minority of actual fraudulent claims.
“Aggressive marketing by Claims Management Companies is at the core of the problem. These companies add nothing to the process.
“Changes already made by the Government on the basis of a deal to make claims more difficult in return for which insurers would reduce car insurance rates seem likely to leave the Government with egg on its face.”
17 June 2013

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