The government has put whiplash reform back on the agenda with a promise to tackle “rampant compensation culture” in the Queen’s Speech.
The reforms outlined in the Civil Liability Bill are anticipated to save motorists £35 per year in reduced premiums.
The changes, largely a transplant of those in the Prison and Courts Bill from the last Parliament, have been welcomed by insurers and slammed by law firms.
They include a ban on pre-meds – offers to settle claims without support of medical evidence – and a fixed tariff of compensation for whiplash injuries with a duration of up to two years.
Steve Treloar, general insurance managing director at LV said: “The UK is the world capital for whiplash claims and with fraudulent claims adding around £40 to the average car insurance policy, we have to clamp down on the compensation culture that is rife in this country.
“The original proposals from government on tackling whiplash didn’t go as far as we felt was necessary so we’re pleased that they are now committing to making the changes that we’ve long been asking for. Ultimately, we need a fair system that works for everyone and in light of these new plans we’re hopeful of getting that.”
Claimant law group Access to Justice had previously expressed hopes that whiplash reform would be toned down following the replacement of Liz Truss as Justice Secretary, with David Lidington.
However, Andrew Twambley, spokesman for Access to Justice said today: “The nasty party has returned.
“Young people and the elderly, who are particularly vulnerable in road accidents, will lose their rights while giant insurance companies and their shareholders will benefit to the tune of hundreds of millions a year.”
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