Legal News

Small claims limit to stay as MoJ announces medical panels

Chris Grayling OfficialThe Ministry of Justice has announced that it will not be proceeding with plans to raise the limit of claims for personal injury in the small claims court, although Justice Minister Chris Grayling has not ruled out the possibility of a rise in future.

Announcing the decision on 23 October, he said: “We have listened to the views of the transport committee and others that now may not be the right time to raise the small claims limit because of the risks that it may deter access to justice for the genuinely injured and encourage the growth of those disreputable claims firms which so damage the industry.

“At this stage, we have decided to defer any increase in the small claims track until we can determine the impact of our wider reforms on motor insurance premiums and better safeguard against the risks.”

The MoJ also announced the introduction of independent medical panels to ensure only evidence from accredited experts is considered.

Mr Grayling said: “It’s not right that people who cheat the insurance system get away with it while forcing up the price for everyone else - so we are now going after whiplash fraudsters and will keep on driving premiums down.”

Commenting on the announcement, Kathryn Mortimer, Head of Legal at DAS Group and managing director of DAS Law, said: “We had serious concerns that a rise in the small claims court limit, and the non-recoverability of legal costs within it, would have led to an environment where genuine claimants would have severe difficulty in finding a solicitor to take on their case.  

“We are delighted that the Government has heeded the advice of the Transport Select Committee and decided not to raise the limit. DAS Group is committed to assisting people with their legitimate legal claims through their legal expenses insurance and as clients of DAS Law. This news removes the uncertainty for all parties, in a rapidly changing legal environment, following the introduction of LASPO earlier in the year.

“Whilst the details of the medical panels are still to be determined, we are in favour of measures to tackle fraud and reduce motor premiums that ensure genuinely injured people continue to be able to seek the compensation they need.”