What to expect now that the UK’s whiplash reforms are entering into effect
Submitted by Andy_B on Monday, 14 June 2021 Page Views: 448
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The whiplash reforms, formally known as the Civil Liability Act 2018, aims to make important changes to the way people file a personal injury claim for low-value road traffic accidents. These changes, which entered into effect on 31 May, have the purpose of reducing not only the cost of compensation for claims but also the number of claims that are being made each year and will affect England and Wales citizens. As mentioned, the changes come effect on 31 May. Up until 30 May, if you suffered a whiplash injury in a car accident and someone else was the party at fault, you were allowed to make a personal injury claim. If the claim is successful and worth over £1,000, the insurer of the party at fault will have to cover compensation for the injuries, pain, and financial losses of the victim, as well as their legal fees.
Now, however, with the reforms taking into effect, there are going to be a lot of changes brought to the way people can and will claim compensation, as well as to the costs covered by the claim. One major change involves increasing the limit from £1,000 to £5,000. This means a person that files a whiplash claim and their claim is evaluated at less than £5,000, the insurance company will still provide compensation for the injuries sustained, but the amount will not cover legal fees. This will likely apply to all whiplash claims, as very few of them exceed the £5,000 threshold.
The change is still fresh, and the Ministry of Justice promises things will be as clear as possible for citizens, but this does not stop a myriad of questions from appearing.
What other changes are brought by the new reforms?
We already discussed one of the major changes brought by the whiplash reforms, which refers to the fact that the driver’s insurer will not cover legal fees for claims under £5,000. While this is the thing you will hear people talking about most, it’s not the only change brought to the table. Also firms should consider a fleet insurance policy.The Whiplash Injury Regulations have set new limits for compensation amounts victims can expect to receive, and there has been a significant reduction. A whiplash injury victim can now expect to get between £240 and £4,215 if there have only been physical injuries involved, and between £240 and £4,215 if there has been minor psychological damage involved as well. There are, of course, uplifts available for specific situations.
Because victims will no longer receive compensation for legal fees, they will be offered an online claims portal where they can register their claim and become a Litigant in Person. This means they will have to represent themselves, and the Ministry of Justice has released a very long guide to prepare citizens for their new “role”.
How will this affect citizens?
The Ministry of Justice is trying to simplify the way genuine victims file personal injury claims and prevent exaggerated claims from those looking to get rich on the misfortune of others. While there is a very good reason to do this, we are left questioning whether this process will cause long-lasting damage for claimants.As personal injury experts at How To Claim point out, people need legal advice and support, even when filing a claim for whiplash. If they can’t get this type of support because they won’t afford it, things could go terribly wrong. Some may give up before having a chance to ask for what it theirs, and others may receive less compensation than they are entitled to.
One positive aspect about these changes is that there will be a small reduction of about £35 yearly in insurance premiums for drivers. Insurance companies are required to report to the Financial Conduct Authority information that should help the FCA determine if the savings made by insurers due to the new law are passed to their customers.
Representing themselves as Litigants in Person will be quite a challenge for many victims. The process of filing and backing up a personal injury claim is often daunting and challenging for experienced lawyers as well, regardless of the value of the claim. Understanding medical evidence, financial risks, and liability are just a few aspects citizens will have to prepare for.
How are whiplash injury claims made now?
To make sure people are able to make a whiplash compensation claim, the Ministry of Justice provides a portal system where claims can be filed. If someone has suffered a whiplash injury resulted from a car accident that was not their fault, they can go to the portal, register their claim, and represent themselves.In regards to how fast and straightforward the process will be, all we can do is wait and observe. There is going to be a lot of data and evidence the victim will have to collect all by themselves, besides attending negotiations and self-representation in court – quite a stressful and complex experience for someone that does not fully understand the legal system.
Are there any exceptions to these reforms?
Not every citizen is affected by the new reforms. Because the Act applies to England and Wales only, if the accident happens in Scotland, there will be no changes brought to the way the victim can file a claim.Another category that is exempted by the whiplash reforms is called Vulnerable Road Users and includes any person that was, at the time of the accident:
● Riding or being the passenger of a motorcycle
● Using a wheelchair or mobility scooter
● Riding a horse
● Using a bicycle or pedal cycle
● A pedestrian
If a victim falls into any of the categories above, there will be no change in the way they file a whiplash claim.
Can a victim still get legal representation?
The short answer is yes; people will still be able to get legal representation if they want to, as it is a right no one can take away from citizens. Still, it is expected that many law firms won’t be able to further provide assistance for victims without an initial payment, as they will no longer be able to recover legal fees from insurance companies.Some legal companies will probably continue to work on a No Win No Fee basis and will be charging a small percentage of the compensation payment when the claim is settled. This will take some of the financial risks off of the victim’s shoulders and allow them to receive the legal help they need.
With many thanks to Lucian Alexe and Andy B for their kind help and support of this article, including their lovely photos.
