Soft Tissue Claims Consultation

Soft Tissue Claims Consultation

The government has published its response to the Reforming the Soft Tissue Injury (‘whiplash’) Claims Process consultation. The government has decided:

  • Not to pursue the option to remove Pain, Suffering and Loss of Amenity (PSLA) for minor claims.
  • To introduce a single tariff that will cover both whiplash claims and minor psychological  claims. A judicial uplift of 20% is also confirmed.
  • To increase the small claims limit for RTA related claims to £5,000.
  • The small claims limit for all other types of PI claims will be increased to £2,000 in line with inflation.
  • The small claims limit for all PI claims will be kept under review and will consider whether a further increase to £5,000 for all PI claims is required in the future.
  • There will be a ban on pre-med offers for whiplash claims only.

The final stage impact assessment is due to be published.

The Law Society has stated that it is glad that the MoJ has listened to some of their concerns, and has decided to restrict the increase in the small claims limit to £2,000 for personal injury cases other than road traffic claims, they are concerned that the government will go ahead with increasing the small claims limit for all road traffic injuries to £5000. This will deprive motorists and their passengers from being able to recover the cost of essential legal advice for any injuries worth £5,000 and under when a negligent driver crashes into their car.