Friday, 24 February 2017

Government caps whiplash payouts

Justice secretary Elizabeth Truss has unveiled the historic Prisons and Courts Bill, paving the way for the biggest overhaul of prisons in a generation and the delivery of a world-class court system.

This key piece of legislation will underpin measures in the recently published Prison Safety and Reform White Paper, and will help transform how our prisons are run. The aim is to drive down the £15bn annual cost to society of reoffending.

Car insurance premiums will also be cut by around £40 a year, with new fixed tariffs capping whiplash compensation pay-outs and a ban on claims without medical evidence, helping to crack down on the compensation culture epidemic.

Key measures within the legislation will make our courts swifter, more accessible and easier to use for everyone. They will be efficient and fit-for-purpose, with facilities across the entire estate that are modern, user-friendly, and work in favour of our dedicated judges and magistrates.

The use of virtual hearings will be extended, allowing victims to take part without running the risk of coming face-to-face with their assailant. Many hearings, such as bail applications, will be resolved via video or telephone conferencing, allowing justice to be delivered more swiftly.

Offenders charged with some less serious criminal offences, such as failure to produce a ticket for travel on a train, will be able to

• plead guilty online

• accept a conviction

• be issued a penalty and

• pay that penalty there and then.

And businesses will be able to recover money much more easily, with digital services that allow them to issue and pursue their cases quickly. This will give them vital confidence to do business here, and will enable our world leading justice system to remain the international destination of choice for dispute resolution.

Commenting on the new bill, which includes plans to cap whiplash compensation pay-outs and raise the small claims limit for road traffic accident claims, James Dalton, director of general insurance policy, Association of British Insurers, said, 'The reforms to whiplash claims set out in the Bill cannot come soon enough. For far too long claimant lawyers have been defending a system riddled with exaggerated and fraudulent claims because they have been profiting handsomely from it. The gravy train must stop. Motorists know that the UK's roads have been getting ever safer, so why have whiplash style claims been rising? People want an insurance claims system that provides compensation and support to those who genuinely need it. What they don't want is to be plagued by spam calls and texts from ambulance chasers, whilst personal injury lawyers continue to profit from a broken system in urgent need of reform.'