Liverpool Law Jan 2017

PI Law Reform
PI Law Reform Wolf in MOJ
Consultation Sheeps’ Clothing
The MOJ have released the consultation that the personal injury industry have been waiting for since
George Osborne’s 2015 Autumn Statement (see website link details below). The consultation entitled
“Reforming the Soft Tissue Injury “Whiplash” Claims Process” required a response by the 6th
January 2017. Kirsty McKno outlines the proposals and the Society’s reponse...
Despite a number of representations to the MOJ with regard to the
unreasonableness of the consultation period in view of the
significance of the proposed changes and intervening Christmas
period, including from Liverpool Law Society, it has been confirmed
that there is no intention to extend that period. The MOJ are
working to a timeline around the legislative change that will be
required if the proposals go ahead. This means that they wish to
release their own response during April. Part 8 of the consultation
specifically concerns implementation and confirms that it will be “as
soon as possible”.
George Osborne had originally stated that the intention behind the
reform was to both reduce fraud and create a saving to private
insurance premiums of £40 per annum. Interestingly the focus of the
consultation is based more upon the saving that would be passed to
policy holders from Insurers as a result of their making lower
compensation payments rather than the costs of fraud. Those lower
payments will be achieved by either removing the right to
compensation for “whiplash” altogether or introducing a tariff
where an injury of up to 6 months would attract an award of £400
with an additional £25 payment for any psychiatric elements. The
model extends up to a 24 month injury for which £3500 would be
received although the definition of “whiplash” is yet to be defined.
In addition to reduction by value of award there will be a reduction
in volume achieved through raising the small claims limit for injury
to £5000.
There are far more points to be made about the proposal than this
article permits many of which Capital Economics and Matthew
Maxwell-Scott of Slater & Gordon Lawyers were able to explain at a
meeting held for Liverpool Law Society members on 15th
December. They presented information relating to the empirical data
upon which the consultation has been based and that disproves for
example that the costs of injury claims are £40 per annum and that
raising the small claims limit would have unintended consequences
that include the removal of access to justice for victims of
employer’s liability and public liability claims. Capital Economics
have engaged in surveys that are able to demonstrate the serious
financial impact to Merseyside not just by the loss of legal jobs but
in the loss of work for those businesses that provide services to the
legal industry.
Despite a number of representations
to the MOJ with regard to the
unreasonableness of the consultation
period in view of the significance of
the proposed changes and
intervening Christmas period,
including from Liverpool Law Society,
it has been confirmed that there is no
intention to extend that period.
Liverpool Law Society represent both Claimant and Defendant
lawyers and it was good to see Defendant presence at the discussion.
The consultation is not just a Claimant issue but one that will
impact the industry as a whole and we are working to ensure that a
broad spectrum of views are canvassed and represented in our
response. We are also engaging with The Law Society and other
local law societies as well as trade bodies including the CHO and
APIL. In early January our immediate Past President Alison Lobb
and CLC Chair Kirsty McKno will meet with the Chair of the
Transport Select Committee Louise Ellman to raise their awareness
particularly with regard to the impact to accident victims not least
that without representation they will not have the ability to access
the MOJ portal to which claims must be submitted.
If there are any LLS members who would wish to contribute in
some way please do make contact via LLS or at
Kirsty.mckno@compass-law.co.uk
https://consult.justice.gov.uk/digitalcommunications/reforming-soft-tissue-injury-claims
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Financial Orders: Law & Practice
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www.liverpoollawsociety.co.uk
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