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Whiplash claims

One of the most common personal injuries people claim compensation for is whiplash. Whiplash is a neck injury caused by a sudden movement of the head forwards, backwards or sideways, often as a result of a road traffic accident.

More than 1,500 whiplash claims are made in the UK every day, costing the insurance industry more than £2 billion a year – and adding £90 to the average annual motor insurance premium.

The ABI has campaigned for reform of the personal injury claims system for many years and welcomes the introduction of the Civil Liability Act 2018. Measures within Part 1 of the Act relating to whiplash reform will commence on a day appointed by the Secretary of State and likely to be in April 2020. The reforms will:

  • Provide a tariff of payments for some aspects of whiplash compensation.
  • Introduce a computerised Portal system which will be simple and easy to use
  • Simplify the claims system so legal advice is only paid for on road traffic personal injury claims over £5,000 (rather than £1,000).
  • Introduce a ban on seeking or offering to settle whiplash claims without medical evidence of the injury.

Reform how the Discount Rate used to calculate larger personal injury awards is set, to ensure it is up to date and reflects how claimants typically invest their compensation