25
Nov
15
Other Areas of Law
Small claims track limit for PI to be increased

In today’s Spending Review and Autumn Statement, the Chancellor announced that the Government intends to raise the small claims track limit for PI claims from £1,000 to £5,000, meaning that only small claims track fixed costs will be recoverable for lower value claims.

The Chancellor also announced that the Government will consult in the New Year on removing the entitlement to general damages for whiplash claims.

Further details are available from the Treasury website:- https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/479749/52229_Blue_Book_PU1865_Web_Accessible.pdf 

 

The Chancellor said “We’re going to bring forward reforms to the compensation culture around minor motor accident injuries. This will remove over £1bn from the cost of providing motor insurance. We expect the industry to pass on this saving, so motorists see an average saving of £40-50 per year off their insurance bills.”

 

 

 

20. People will no longer be able to get cash compensation for minor whiplash claims

To make it harder for people to claim compensation for exaggerated or fraudulent whiplash claims, the government is ending the right to cash compensation.

More injuries will also be able to go to the small claims court as the upper limit for these claims will be increased from £1,000 to £5,000.

This means that annual insurance costs for drivers could fall by between £40 to £50 a year.


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