What are ‘the Whiplash Reforms’?
The whiplash reforms are a package of measures that were implemented on the 31st of May 2021 by the Civil Liability Act 2018. These reforms change not only the way that certain low-value road traffic accident (RTA) claims are dealt with, but also, the way Claimants are compensated in such cases.
How have ‘the Whiplash Reforms’ changed RTA and personal injury claims?
Prior to the implementation of the whiplash reforms on 31st May 2021, the limit for the Small Claims Track (the route to bring a low value claim to court) was £1,000. This meant that if an individual made a claim for personal injury and that claim had a value of less than £1,000, the claim would fall into the Small Claims Track and the Claimant would not be entitled to recover their legal costs. This however, has now changed.
The whiplash reforms have increased the Small Claims Track limit for RTA claims from £1,000 to £5,000. This means that, if you are making a claim for injuries that you have sustained in an RTA on or after the 31st May 2021, your injuries must be valued at over £5,000 in order for you to pursue the claim with the assistance of a solicitor.
What happens if the value of my injuries are less than £5,000?
If the injuries that you sustained in an RTA on or after the 31st May 2021 have a value of less than £5,000, you will now be able to submit a claim yourself with the insurers using the new online portal, Official Injury Claim, without the need for legal representation.
There are however some exceptions to the new £5,000 limit in RTA claims. These include claims where:
- The Claimant is a child or protected party;
- The Claimant was a ’vulnerable road user’, e.g. pedestrians, cyclists, motorcyclists and sidecar passengers, horse riders and those using mobility scooters;
- On the date proceedings started, the Claimant is an undischarged bankrupt, or the Claimant or Defendant acts as a personal representative of a deceased person; and
- On the date that the accident occurred, the Defendant’s vehicle was registered outside the United Kingdom.
If the claim falls under one or more of these exceptions, the old £1,000 limit will continue to apply, meaning that you will still be able to seek the assistance of a solicitor even though the value of your injuries are below £5,000.
How will the whiplash reforms effect my compensation?
For injuries lasting less than two years, the whiplash reforms have introduced a tariff to decide how much compensation a person should awarded for their injuries. If therefore you are making a claim for injuries sustained in an RTA on or after the 31st of May 2021, and those injuries lasted less than two years, your compensation will be confined to a sum between £235.00 and £3,910.
Will these reforms effect my claim?
That depends. The whiplash reforms only apply to claims resulting from accidents which occurred on or after the 31st May 2021. So even if your claim is made after the 31st May 2021, so long as it relates to an accident that occurred before that date, luckily for you, the reforms will not apply to your claim.
Will these reforms effect my personal injury claim against my employer or a public body?
No. The whiplash reforms do not affect any claim you may have against an employer or public body for personal injury. You may therefore be assisted by a solicitor in your claim against an employer or public body despite your injuries being valued at below £5,000.