ALPS help you to get to grips with the Civil Liability Bill

In 2018, the Civil Liability Bill came into effect, aiming to stamp out Britain’s compensation culture when it came to whiplash style claims. With more reforms set to come into effect in 2020, what does this mean for motorists?

It has been reported that whiplash style claims are more common in the UK than in all major world economies. In fact, despite road accident figures falling by 30% since the mid 2000s, there has been a 40% increase in personal injury claims. It is the hope that putting stricter reforms in place will help to put a stop to, or at the very least reduce the number of exaggerated claims. In doing so, this will hopefully drive down the cost of car insurance by halting the rise in motor insurance pay outs for small injury claims.

WHAT IS THE CIVIL LIABILITY BILL?

The Civil Liability Bill, which came into effect on 20th December 2018, aims to create a fairer system for claimants, insurance and taxpayers by bringing about reforms to personal injury compensation. It is estimated that the reforms will help to save insurers around £35 - £40 per policy, which can then be channelled back to create savings for customers. The reforms will see the small claims court limit increased from £1,000 to £5,000. There will also be a ban on attempting to settle whiplash claims without medical evidence of the injury. Previously any claimant for personal injuries over £1,000 could utilise the services of a solicitor and recover the legal costs from the at fault third party and their insurers. Going forward, an estimated 90-97% of all road traffic accident personal injury cases will now fall under the new whiplash tariff and this means that any claimant with a personal injury claim under £5,000 will have to pay for their own legal fees - the compensation pay-out will also be significantly reduced.

PROTECTING ORDINARY PEOPLE

For personal injuries which fall within the new small claims court system and in instances where clients don’t have Legal Expenses Cover as part of their policy, they can present and manage their own claim via an online portal which is due to be launched in 2020. There are real concerns that despite the reforms helping to reduce the number of fraudulent claims, it could also restrict ordinary people from getting the legal advice and compensation that they are entitled to, and ultimately their access to justice. The insurance customer is still entitled to the very best service from their broker or insurer. However, these changes mean that there has never been a more important time for insurance customers to find quality and fully insured motor legal policies which protect them against any eventuality on the road.