The Ministry of Justice has published its response to the 'Reducing the Number and Cost of Whiplash Claims' consultation and announced proposals to help with the cost of driving.
In a widely unexpected move, the government has decided that it will not increase the personal injury small claims limit in England and Wales at this time. The government also announced that car insurance premiums had fallen by 12% (equivalent to an average of £80 per policy) over the past year.
The news has been welcomed by Law Society chief executive Desmond Hudson.
"The Ministry of Justice's decision to heed the warnings of the Transport Select Committee and maintain the small claims limit at its current level for personal injuries is good news for accident victims and a victory for common sense," he said.
"It reduces the risk of people with real injuries being fobbed off with less than they are entitled to. The government has made the right decision in the face of relentless lobbying by the insurance industry seeking to increase the small claims limit and make it more difficult for genuine claimants to obtain just settlements," he added.
The government has also announced plans for improved data sharing by insurers and confirmed that next year it would be proceeding with the introduction of new independent medical panels made up of accredited professionals only, with the intention to avoid exaggerated and fraudulent claims.
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