Claiming for Personal Injury following a road accident is changing

Historically claiming for personal injury due to a road traffic accident has become a popular enterprise for some fraudulent companies who have sought to cash in on loop-hole legislation. Across the UK, many residents have received the typical phone call, asking if they have had an accident in the last 5 years and would we like make a claim.

However, under new government guidelines this is about to change with new measures which will make it harder for fraudulent companies to operate and exaggerate personal injury claims in order to make a tidy profit; which is believed to be the cause behind rising insurance premiums.
The changes to claiming against personal injury will come into effect on 1st August 2020 and are as follows:

  1. Whiplash will become a much lower level claim value of up to 2 years
  2. The small claims limit will increase from £1,000 to £5,000 for road traffic accident personal injury
  3. A government portal will provide a centralised regulated service where personal injury claimants can make a claim for under £5,000, following which the insurer can settle
  4. A full medical report must be provided as evidence when making a personal injury claim and before it can be processed

Why is the small claims limit increasing?

By increasing the small claims limit from £1,000 to £5,000, it will move the personal injury claim from the current fast track process to the small claims process – currently this accounts for approximately 95% of claims. By doing this, Solicitors can not claim for fees and so they will no longer be able to handle these types of claims under the existing ‘no win, no fee’ process.

If you wish to make a claim, you will be able to do so through the new government portal or pay privately to be represented, however please note that this could be costly.

If you have a Motor Legal Expenses policy which includes small claims, then you maybe able to use this in helping you to make a claim, however it is worth checking if your Motor Legal Expenses policy includes this.

To find out more about Motor Legal Expenses policies or indeed other Motor related insurance policies, please contact our office on 01384 465277 / We offer Motor Legal Expenses policies and a range of Motor insurance policies which cover both companies and individual employees.

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