LMA supports whiplash reforms proposed in Prisons and Courts Bill

The Lloyd’s Market Association (LMA) has welcomed today’s announcement from the Ministry of Justice about provisions included in the Prisons and Courts Bill in relation to the reform of whiplash claims.

Provisions include: an increase in the Small Claims Track limit to £5000 for road traffic injury claims and £2000 for all other personal injury claims; the introduction of a new fixed tariff, capping whiplash compensation payments and; a ban on pre-medical offers.

The current compensation system offers too many opportunities for solicitors and other claims service providers to earn fees from pushing claimants through the compensation system, even where injuries are extremely minor, trivial or fraudulent.

David Powell, LMA's Non-marine Manager, said: “We appreciate that the Government is seeking to strike a balance by capping whiplash compensation payments, using a sliding scale depending on the duration of the injury. The LMA has advocated that compensation for pain, suffering and loss of amenity for minor claims should be removed entirely. This is because these damages are used as a ‘carrot’ for the claimant industry that earns fees from recruiting claimants and the process has become riddled with abuse. The key issue will be the effect of the reforms on claims frequency and associated costs; if they do not reduce neither will premiums”.

The Prisons and Courts Bill was introduced today.

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Notes to Editors

For further information please contact:
James Milne, Communications Manager
Lloyd’s Market Association
T 0207 327 8405
E james.milne@lmalloyds.com

About the Lloyd’s Market Association (LMA)

Formed in 2001 and located in the heart of the Lloyd’s Building in the City of London, the Lloyd's Market Association represents the interests of the Lloyd’s underwriting community. All underwriting businesses at Lloyd’s are members, together managing gross premium income of around £30billion per annum. For more information visit: www.lmalloyds.com.