Recent data suggests that the government’s whiplash reforms are having long-lasting effects.
The data, from the government’s Compensation Recovery Unit (CRU), was obtained by the Association of Consumer Support Organisations (ACSO). Motor injury claims dropped to an all-time low of 76,678 for Q3 2024, an 11% decrease from the same period in 2023. This continues the downward trend seen in April to June 2024.
The whiplash reforms, which were implemented in May 2021, introduced several measures to address the high number and cost of whiplash claims. The aim of the programme was to reduce motor insurance premiums for consumers. The UK government aimed to do this through measures including fixed tariffs for compensation; increasing the threshold for which claims could proceed through the Small Claims Track; and launching the Official Injury Claim service for claimants to manage their own claims with or without legal representation.
The reforms have garnered plenty of criticism, including that they ignore complex claims and that 90% of claimants who use the Official Injury Claim portal still feel they need to use legal representation to navigate the system.
Currently, the whiplash reforms appear to have reduced the number of low-value road traffic accident-related personal injury claims, but do not appear to have had much effect on lowering insurance premiums.
Matthew Maxwell Scott, ACSO executive director, commented, “These CRU figures reflect the continuing impact of the government’s whiplash reforms, as well as the cumulative effect of other measures taken in recent years.”
“The decline is especially relevant in light of the government’s announcement that it is to investigate the high price of motor insurance through the Motor Insurance Taskforce. Not even the most vociferous advocate for the insurance industry can now assert that soaring premiums are the fault of all those making minor injury claims.”
ACSO has urged swift government action to publish decisions on the new whiplash tariff and updated medical report costs. “Volume injury claims and firms who help injured people need a sustainable future,” Mr Maxwell Scott stressed.
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