The Ministry of Justice (MoJ) has this week confirmed that the figures contained in its consultation released last week, which confirmed the government’s intentions to dramatically reform the personal injury sector, were incorrect.[i]
The figures which were used to outline the proposed increase to the small claims limit for personal injury cases and the tariff for general damages in minor whiplash claims, were out of date. The MoJ has revealed that this document was written over a year ago and the figures were based on the JC Guidelines before they were updated in September 2015.
As we outlined in edition 114 of BC Disease News, the 13th edition of the JC Guidelines provides for more generous brackets of damages than the 12th edition. This is especially so for the lowest band of soft-tissue injury which was increased by 20%. The comparison of the two editions can be accessed here.
As a result of this error, it has been suggested that the consultation is now open to judicial review. We will continue to report on this aspect of the proposals.
Elsewhere, the Chancellor of the Exchequer, Phillip Hammond, in his Autumn Statement, confirmed the government’s commitment to legislate next year to end ‘the compensation culture surrounding whiplash claims – a major area of insurance fraud’.
[i] Rachel Rothwell, ‘MoJ’s Whiplash Reform Blunder “Could Open Door To Judicial Review”’ (The Law Society Gazette 23 November 2016)< https://www.lawgazette.co.uk/law/mojs-whiplash-reform-blunder-could-open-door-to-judicial-review/5058912.article> accessed 24 November 2016.