Proposed raise of small track in Personal Injury to 5k

07 January 2016

Now the dust has settled after Mr Osbornes Autumn statement it is clear to see that the proposed changes have raised many questions regarding the landscape of the industry moving forward. How will law firms who rely on personal injury continue? How will the issue of what is and isn’t an actionable injury be defined with the potential scrapping of minor whiplash claims?

The most important question is however, who will look after the genuinely injured victims ensuring their rights are protected and they recover the compensation they need and deserve?

Since 2013 the costs Insurers have had to pay to the Solicitors has been reduced by around 60%. It is clear that a lot of the costs Insurers were having to bear in terms of Solicitors fees have been reduced. However, the Insurance Industry still argues there is still a lot to be done in terms of reducing the cost of whiplash that allegedly adds £90 per year to each car insurance policy. Apparently the only way this can be tackled is by removing the right to claim for whiplash injuries and the right to have legal representation.

Increasing the limit for personal injury claims up to £5k is going to have a catastrophic effect on victims’ rights to be represented. Many firms offering personal injury as a service have already been forced to rethink their business model and cut their cloth accordingly or have folded altogether. Clearly if the changes occur as promised then the victims ability and right to seek redress and justice whilst being represented by a Solicitor will be slim at best.

CMC’s and other unregulated practices are sure to open their doors and welcome the injured in with open arms knowing they do not have the expertise or know how to act on behalf of the Client and represent them correctly and fairly. Alternatively, they will have to seek compensation by being self-represented.

One of the big hopes of the Jackson reforms for the Government and Insurers were that the ban on referral fees would put many CMC’s out of business and rid the industry of underhand and unregulated practices where many vulnerable Clients have been taken advantage of when seeking representation.

All the changes will seek to do is to make the injured victims that much more vulnerable whilst increasing the amount of unemployed legal professionals claiming state benefits. For further advice on these developments or if you want to seek representation in pursuing a claim for injury then please contact us on 0151 251 0070.