The Whiplash reforms and Official Injury Claim portal will take effect for RTA injury claims below £5,000 from 31st May 2021 onwards.
Yesterday the Government also announced that the Small Claims Track (SCT) limit for Casualty injury claims (Employers and Public Liability cases) will be increased to £1,500 (from £1,000) rather than the originally proposed £2,000. Implementation of the new limit is deferred until April 2022.
The House of Commons and House of Lords are both due to debate the proposed SCT Casualty increase this week although implementation is anticipated to be a formality. In a statement ahead of the debates, Lord Wolfson of Tredegar, speaking on the lowered limit, said:
‘Pausing its implementation for 12 months will enable greater focus to be placed on the commencement of the whiplash reforms and the launch of the new Official Injury Claim service for claimants on 31 May 2021.’
Under the new reforms, fixed injury tariffs are set for whiplash injuries up to two years with a statutory review of those tariffs every three years. Lord Wolfson, following a suggestion from the Lord Chef Justice, has indicated that the government would be open to reviewing the tariffs in advance of the 3 year statutory requirement.
In reality a £500 increase in the Casualty SCT limit will not make any substantive difference or achieve any material savings for the insurance market. However, for extremely minor injuries in the workplace some reduction in indemnity spend could be achieved as the SCT is a no cost environment.
If you would like to know more about this matter, please speak to your contact at Plexus Law:
Anthony Baker, Partner
T: 0113 468 1702 | M: 07811 545 321 | E: email@example.com