06 January 2017

LMA backs Government’s proposed whiplash reforms

The Lloyd’s Market Association (LMA) has welcomed the proposed package of measures  outlined in the Ministry of Justice’s (MoJ) consultation document ‘Reforming the Soft Tissue Injury (Whiplash) Claims Process’.

The LMA supports the vast majority of proposed reforms, including removing general damages for pain, suffering and loss of amenity in low-value injury claims and increasing the small claims track limit to £5,000. The MoJ is also proposing to ban insurers from making settlement offers before a medical examination has been undertaken. The LMA would like to see pre-medical offers permitted in certain circumstances, such as where claims are presented more than six months after the accident. In such cases a medico-legal report offers no benefit, purely adding time and cost to the settlement process.

David Powell, LMA Non-Marine Manager, said: “At present it is extremely difficult for insurers to defend against unmeritorious soft-tissue claims. Diagnosis of soft-tissue injuries and any related pain and suffering is self-reported by claimants, often months after the accident. Doctors are incentivised to support the claimant and the resulting legal ‘evidence’ is almost impossible for insurers to challenge or disprove. A direct consequence is that costs for insurers have spiralled out of control, with claims now 50% higher than 10 years ago, despite a fall in accident frequency. Premiums will remain unnecessarily high unless we change the compensation system to remove incentives for middlemen and minimise abuses”.

‘Reforming the Soft Tissue Injury (Whiplash) Claims Process’ consultation closes today, 6 January 2017, at 5:30 pm.

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Notes to Editors

For further information please contact:
James Milne, Communications Manager
Lloyd’s Market Association
T 0207 327 8405

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 £27billion per annum. For more information visit: