Government plans to instrument extensive reforms to the personal injury sector is being fought against by an emerging group. Access to Justice (A2J) has pointed a finger at insurance companies who they believe has misinformed ministers to influence legislation which benefits them.
Recently, the government has announced plans to remove general damages for soft tissue injuries and up the small claims limit to £5k from the current limit of £1k. Their aim is to implement the changes very soon.
To tackle the proposals, Access to Justice wants to support members with a unified front. They want to work with the government and insurers to produce better options which confront reservations about fraud.
The chair of Access to Justice is concerned that he government does not have a proper understanding of what their plans will deliver and have been duped by the insurer’s ability to lower premiums. This needs to be consulted with the ministers for them to realise the repercussions of their sweeping changes.
bad news for claimants
It is argued that people with genuine injury claims will be deprived of access to justice and the price for insurance will continue to increase as insurers will counteract the reduction in income with greater premiums. This may be good news for insurers and investors but dreadful for those injured in an accident that was not their fault and are no longer in a position to claim.
Clamping down on cold calling and harsher regulating of fraud actions is supported by the Access to Justice with better data sharing and more prosecutions of fraudsters.
The insurance companies have stated that after the reforms the motorist will see a reduction of £50 from their premiums. Solicitors and the Law Society condemn and oppose the plans as there will no authorised checks in place to ensure that the insurers keep their promise to lower premiums.