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BIBA publishes a reminder in relation to the new Whiplash reforms coming into force

Link(s):New Whiplash reforms
Whiplash Reform Programme: Information and FAQ – GOV.UK (www.gov.uk)

Context

The government is making changes to the claims process for low value road traffic accident (RTA) claims, commonly referred to as ‘whiplash claims’, which will take effect from 31 May 2021 onwards.  The reforms will apply to low value personal injury claims arising from an RTA including whiplash injuries.  This means that claimants will have the opportunity to settle these small personal injury claims without the need to go to court or for legal representation.  From 31 May 2021, claimants will make claims using the Official Injury Claim Service.

Key points to note

The Whiplash Reform Programme package of measures includes:

  • The introduction of a fixed tariff of compensation exclusively for pain, suffering and loss of amenity for whiplash claims up to a duration of two years. This tariff will determine the personal injury damages claimants will receive for whiplash injuries.
  • A ban on settling whiplash claims without medical evidence. The Official Injury Claim Service will enable claimants to source medical reports to ensure claims are supported by medical evidence before settlement.
  • Increasing the Small Claims Track (SCT) limit for Road Traffic Accident-related Personal Injury claims from £1,000 to £5,000 via amendments to the Civil Procedure Rules. This means that the majority of such claims will no longer be subject to fast track rules, where the recovery of legal costs operates on a ‘loser pays’ principle but will be allocated to the SCT, where parties are responsible for paying their own legal costs.
  • The introduction of the Official Injury Claim Service which has been carefully designed to provide claimants with a modern, accessible, user-friendly digital system, supported by guidance. The service will enable all claimants, particularly those without legal representation, to make and settle their own claim pre-court.

The Acknowledgment of Service forms (English and Welsh versions) are available via the links below:

Next actions

Provided for information, but particularly for firms involved in motor claims handling.