Editorial: Autumn Statement - Aidan Ellis, Temple Garden Chambers
16/12/15. Two potentially dramatic announcements were buried within the Chancellor’s recent Autumn statement. Under the heading ‘lower household bills’, the Chancellor announced an end to the right to cash compensation for minor whiplash injuries. Moreover, he also announced that the small claims limit for personal injury claims would rise to £5,000 from the current level of £1,000. It is clear that these initiatives are driven by the desire to eliminate fraudulent claims and to cut the cost of motor insurance. Both are laudable objectives but both measures are problematic.
Eliminating cash compensation for minor whiplash injuries is too blunt an instrument to achieve the stated objectives. First, although the aim is said to be to root out dishonest claims, the measures proposed will root out both honest and dishonest claims indiscriminately. The result would be that a significant number of honest claimants would not be compensated for their injuries. Second, the...
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