In
response to an ever-increasing premium for motorist insurance due to fraudulent
soft tissue personal injuries from motor accidents, the UK Chancellor George
Osborne proposed to increase the small claims court's limit from £1000 to £5000
and to abolish all soft tissue "minor" personal injuries from
personal injury claims.
However,
UK's Law Society criticised the Chancellor's proposals. Law Society President
Jonathan Smithers said the society "is gravely concerned the proposals
will undermine the right of ordinary citizens to receive full and proper
compensation" due to the lack of legal advice for personal injury claims
below £5000
"Personal
injury claims, even lower value claims, can include serious injuries arising
from the fault of an employer or other road traffic accidents where legal
rights can be very complex and the injuries caused debilitating. A new limit of
£5000 will mean personal injuries including facial scarring would be considered
as ‘small claims’. This is totally unacceptable," Smithers added.
The
Select Transport Committee (STC) also criticised the proposals as it only
surveyed insurers rather than victims and insurance holders. The STC iterated
the Law Society's criticism and highlighted that victims may not represent
themselves properly in the small claims court without proper legal advice.
The
high number of UK whiplash personal injuries receiving compensation had forced
insurers to charge an extra £90 per motorist insurance premium in the United
Kingdom. The industry estimates it loses £2billion from repaying fraudulent
claims.
