The Government following a review of the small claims limit and consultations with various parties has now increased the small claims limit. The changes are a half-way house with regard to the limits the insurers wished to impose if they had the chance.
For ‘Whiplash’ (RTA) claims the small claims limit will be increased upwards to £5,000.00 and for all other personal injury claims an increase in the threshold of £2,000.00.
The original proposal championed by the insurance industry was to ban all whiplash-type injury claims and the small claims threshold to be raised to £5,000.00 for all personal injury claims.
The changes which still require legislation are to also include fixed tariffs to cap whiplash payments and also a ban on pre-medical offers for whiplash which had become a tactic for some insurers.
The changes will be brought in under the Prisons and Courts Bill; with some commentators predicting this will be implemented at the back end of 2018.
The changes in essence still allows individuals to pursue their own injury claims without legal representation which would fall within the revised small track limits; however this is likely to open the door for claims management companies to get a piece of the action and run the claims for individuals taking a slice of the awarded compensation as a fee.