This week Lawyer monthly heard from Amanda Cunliffe, founder and Chief Officer for Legal Practice at Amanda Cunliffe Solicitors, who below analyses the Government’s proposed changes to small claims limits and offers her expert opinion.
There are a number of common misconceptions among the general public when it comes to personal injury law. The most prevalent tends to be the idea that many – if not most – claimants are fraudulently exaggerating their injuries, to maximise insurance pay-outs following a road accident or workplace injury.
To tackle this perceived problem, the Government plans to reform the way claims are dealt with. This would mean that anyone with a claim worth less than £5,000 would be denied the opportunity to bring a claim to a regular court. Instead, they would have to bring a ‘small claim’ and, in doing so, would have to pay their own legal costs or face being unrepresented.
To give an idea of the impact of these changes, 95% of the claims currently going through court would be affected – losing a right to no win, no fee representation.
Worryingly, the move will rule out many honest victims from claiming lifeline financial support following an accident, particularly those prevented from working, through no fault of their own.
As in any area of industry, it would be dismissive to deny that there are those who look to take advantage of the system, but much has been done to stamp out the conmen. Here are just two examples: in 2013, new legislation placed more potential liability on claimants, deterring false claims; while in 2015 further laws were brought in to ensure absolute independency between lawyers, and the doctors making judgements on injury. The list goes on.
To start a witch hunt on an entire industry on the back of a small number of fraudsters misses a point – what about the large majority of honest claimants who would be forced to soak up prohibitively costly small claims proceedings, or else represent themselves, without the expertise required to develop a convincing case for the court?
As personal injury lawyers, we make a living on establishing the presence of truth through diligent analysis of the facts. Rigorous checks and balances ensure the integrity of our profession. Without trust in our industry, and faith in the judicial system, there is no way the industry can exist.
Crucially, lawyers act on behalf of their clients irrespective of their means. We must afford any people the chance of their day in court, irrespective of their financial background.
By citing insurance premiums as the chief reason for proposing the small claims reforms, the Government is painting the insurers as the victims. But again, a look at the facts shows that this is very likely not the case.
Claims have gone down. The Government’s own Compensation Recovery Unit figures show a decrease in whiplash claims of 22% since 2008. However, in 2016 insurance premiums rose by more than £100 on average, according to research from MoneySupermarket.com.
Some insurers cited insurance premium tax rises as the culprit – however, a 3.5% increase in 2016 does little to explain a jump in premiums of almost 20%.
In Lawyer Monthly's most recent edition you will also find a 'Your Thoughts' feature titled 'What Might be the Impact of the UK's Cuts to Whiplash Claims', which offers particular insight into the government's plans on small claims.
