Courts Bill May Leave People Under-compensated
The Prison’s and Court’s Bill changes may leave injured claimants under-compensated. It also still does not resolve what many in the legal sector know – that it will line insurers’ pockets.
The new bill, introduced by MoJ (Ministry of Justice) Minister Liz Truss, puts forward an introduction of fixed tariffs to control the payments of whiplash compensation claims.
The MoJ believes the plans will ensure these payments are proportionate for the level of injury suffered. Of course, because of strict lobbying by the insurance industry to convince the government to bring these misguided changes in, innocent motorists will suffer.
In effect the Tory government will prevent injured people from getting fair compensation. In another deluded belief that insurance premiums will fall, there is no law in England or Wales to hold insurance companies to their word. They promised that all motorists would save on average £40 per year on car insurance premiums if these legal reforms were forced through. Yet this is a big lie.
The bill also raises small claims limit for whiplash injuries to £5,000. Furthermore, a ban will be placed on whiplash claims without medical evidence.
There is also a limit placed to £2,000 for other personal injury claims.
The government continues to argue that these proposed changes will lower car insurance premiums by £40 a year helping to crack down on the widespread compensation culture. We’ve heard this time and time again but it is deeply flawed. Motor related personal claims have been falling since 2011 despite motor premiums increasing.
Is this yet another political attack on the working classes of Great Britain? The burden will once again fall on families and individuals in our society, just as the tax and austerity burdens fell on them. The Labour Party under Jeremy Corbyn does not support these Tory legal changes. Yet people will be under-compensated if these changed make it through the Commons, and time will tell if premiums actually drop.
In simple terms, an injury of whiplash is a perfectly legitimate one. However, it is being abused by the insurance industry to make profit for its shareholders.