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Statement to Parliament: Implementation of the Whiplash Reform Programme

Ministry Of Justice

February 27
12:50 2020

I would like to provide an update on next steps for the Whiplash Reform Programme.

The Government remains firmly committed to implementing measures to tackle the high numberand cost of whiplash claims. The Reform Programme includes the measures in Part 1 of the CivilLiability Act 2018, which will introduce a fixed tariff of damages that a court may award for pain,suffering and loss of amenity for whiplash injuries sustained in a road traffic accident, as well as aban on the making or accepting of offers to settle a whiplash claim without a medical report.Alongside these, we will be increasing the small claims track (SCT) limit for road traffic relatedclaims to 5,000.

The Government had indicated that we wished to implement these measures from April 2020.The Ministry of Justice has made major progress towards this. It has worked closely with theMotor Insurers Bureau (MIB), and with stakeholders representing claimants, including litigants inperson, and defendants, on the successful build of a new Official Injury Claim Service (theService). With the MIB, and using independent research, we have designed the new Service toput the needs of the claimant at its heart. It will provide a simple, user-friendly and efficient onlineroute to provide those affected by road traffic accidents with an opportunity to settle small claimsfor personal injury without the need for legal representation or to go to court. Where a claimant isnot able to make a claim online there will be the option to do so on paper. A dedicated customercontact centre will be available to support all customers through the journey if necessary.

Alongside the MIB, the Ministry of Justice has demonstrated the development of the Service atnumerous stakeholder events in London and Manchester, and spoken at stakeholderconferences across the country. We have been clear about the design of the Service, and howwe will work to ensure stakeholders from across the claimant and insurance industries are keptaware of, and can feed into, the development of the new platform.

Despite this progress, the Government has given careful consideration to whether implementingthe whiplash measures in April remains practical, given the work that remains to be completed.We have listened to the arguments made by both claimant and insurance representative bodies.

As a result, the Government has decided that more time is necessary to make sure the WhiplashReform Programme is fully ready for implementation. We have always been clear that we need todo this right rather than hastily. In particular, we need to provide sufficient time to work with theCivil Procedure Rules Committee to put in place the supporting rules and pre-action protocol andto give industry sufficient time to prepare their businesses for the changes to how small roadtraffic personal injury claims are managed. We will also lay the statutory instrument in Parliamentto introduce the tariff of damages for whiplash injuries.

In the light of this, the Government has decided to implement these reforms on 1 August 2020.The necessary rules and pre-action protocol, and the statutory tariff, will be published in sufficienttime before implementation.

The new Service is designed with all users in mind, and will be simple and easy to operate.Currently motor insurers accept liability for damages in the majority of whiplash claims after road traffic accidents, and we do not expect insurer behaviour to change post implementation.

However, there will be occasions when insurers do not accept liability, and claimants will need tobe able to resolve liability disputes. Initially, the Government proposed to include a form ofAlternative Dispute Resolution to enable liability and quantum claims to be adjudicated. However,in the event, no practicable solution which gave sufficient coverage of ADR for claims could befound. As a result, ADR will no longer be part of the online Service. Instead, we will ensureaccess to justice by developing bespoke processes to enable litigants to go to court to establishliability.

The increase in the small claims track limit will not apply to those who have been termedvulnerable road-users, for example, motor-cyclists, cyclists and pedestrians, and who in anyevent will not subject our whiplash tariff provisions.

The increase in the small claims track limit will also not apply to children or protected parties. Thiswill enable the Government to test the processes and ensure that we have them correct beforeconsidering further extension.

Because these claimants will not be subject to the new small claims limit, they will also not besubject to the new pre-action protocol and so will not have access to the online Service. As such,they will not be able to source their own medical report via the online Service, which is statutorilyrequired to settle claims for whiplash injuries. Therefore, until they can access the online Service,the normal track for claims by children and protected parties which include a whiplash injury, willbe the fast track and these claims will not be allocated to the small claims track. This means that,for now, these claimants will be able to instruct a legal representative who may obtain a medicalreport on their behalf and their costs of legal representation will remain recoverable. This decisionhas been taken for no reason other than that we consider it the fairest and most straightforwardapproach to ensuring, for now, that these claimants can obtain the medical report which theymust obtain before they can settle their claim.

It is absolutely right that this Government continues its commitment to tackle the high number andcosts of whiplash claims, and the impact these have on the cost of motor insurance premiums forhard working families. Delivering these reforms remains a key Government priority. We willcontinue to work with stakeholders to ensure that all are sufficiently prepared for the newmeasures on 1 August 2020.

Published 27 February 2020

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