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<\/p>\nDixon: Government doesn\u2019t care about injured people<\/p>\n<\/div>\n
The government will need to fill in the detail of the Civil Liability Bill carefully to avoid a new outbreak of litigation because of claimants trying to \u201cgame the system\u201d, a leading defendant law firm has cautioned.<\/p>\n
However, claimant lawyers have promised to keep fighting over the secondary legislation that will implement the bill, which passed its final reading<\/a> in the House of Commons on Tuesday.<\/p>\n Deborah Newberry, head of public affairs at global law firm Kennedys, said: \u201cThe passing of the Civil Liability Bill will provide compensators some much needed certainly, particularly around the discount rate, and they can now start to take proactive steps to adapting their claims handling models to accommodate the proposed measures\u2026<\/p>\n \u201cFor the whiplash measures, the accompanying regulations will, though, need to provide some missing detail around the definition of whiplash injury, and provide some clear guidance to the judiciary as to what circumstances could be considered \u2018exceptional\u2019 in order to justify an award uplift.<\/p>\n \u201cFailure to do so will risk gaming of the system to get around the proposed tariff system or in order to increase the value of a claim, and could create a risk of frictional litigation between parties.<\/p>\n \u201cIt is reassuring that the Bill does include a mechanism to review the definition of whiplash, but the government will need to keep a close eye on behaviours that seek to exploit the system.\u201d<\/p>\n Ms Newberry said justice minister Rory Stewart was \u201cmisguided\u201d to say in Parliament that the bill would remove unnecessary complexity, costs and damage arising from the activities of claims management companies (CMCs).<\/p>\n \u201cIncreasing the small claims limit is likely to be viewed as creating a ripe area for CMCs,\u201d she said. \u201cWith that in mind the government should not be lulled into thinking that, once the bill is passed, that PI reform is \u2018job done\u2019.<\/p>\n \u201cThe Ministry of Justice, along with the Financial Conduct Authority \u2013 which will regulate CMCs from next year \u2013 will need to stay alive to how the market works in order to prevent fraud and claims farming.\u201d<\/p>\n By contrast, the Association of Personal Injury Lawyers (APIL) argued that the government had \u201cdiscarded the principle of full and fair redress for people injured through no fault of their own\u201d by pushing the bill through.<\/p>\n President Brett Dixon said: \u201cContrary to what ministers claim, the government has made it clear that it doesn\u2019t care about injured people, no matter how devastating the injuries. Insurance companies\u2019 profit margins are obviously more important.\u201d<\/p>\n He insisted that genuine injured people \u2013 whether affected by the whiplash or discount rate elements of the bill \u2013 \u201chave been vilified for the sake of saving a supposed \u00a335 on each premium\u201d.<\/p>\n He added: \u201cHard-working, genuine motorists whom ministers and insurers claim to represent will find their compulsory insurance cover will not be sufficient when they need it.\u201d<\/p>\n Claimant lawyer Vidisha Joshi, managing partner of London firm Hodge Jones & Allen, said: \u201cI am saddened but not surprised that the government refused to budge on the Civil Liability Bill, even when it came to protecting children and other vulnerable individuals from the new regime.<\/p>\n \u201cClaimant lawyers will however, continue to make the case to protect their clients and access to justice, and with secondary legislation to implement much of the bill still to be agreed, there remains much to play for.<\/p>\n \u201cThe government should be aware that we as a firm, and many others, will be watching very closely to see if the proposed online portal for claims will actually deliver the experience minister Rory Stewart said that it should.<\/p>\n \u201cIf history is anything to go by, Ministry of Justice IT projects are not without their issues, as has been seen before with the problems caused by it introducing other systems in personal injury before they were ready.<\/p>\n \u201cWe hope that officials have learned their lesson that rushing implementation to meet an arbitrary deadline does not serve anybody\u2019s interests.\u201d<\/p>\n Qamar Anwar, managing director of First4lawyers, added: \u201cIt\u2019s hugely frustrating that the government\u2019s wholesale attack on innocent injury victims remains unchallenged. MPs have let their constituents down by failing to halt reforms that only serve to line the pockets of the powerful insurance lobby.<\/p>\n \u201cWhat\u2019s more, the public have no idea what\u2019s coming their way; our own research showed just 18% knew of the government\u2019s plans.<\/p>\n \u201cThat said, the bill can\u2019t be implemented without secondary legislation so the government should be on stand-by that this is not yet a \u2018done-deal\u2019. We\u2019ll be refocusing our campaigning efforts now on the secondary legislation.\u201d<\/p>\n Mr Anwar predicted that the likelihood of the online portal being ready for use by thousands of consumers from April 2020 was \u201cslim\u201d.<\/p>\n \u201cWe\u2019ll be watching this closely and looking for assurances from the government that the portal is fit for purpose from day one. If they can\u2019t guarantee this, then they\u2019ll need to swallow their pride and move the implementation date back.\u201d<\/p>\n Speaking last week, MIB chief executive Dominic Clayden \u2013 who is charged with delivering the portal \u2013 said he expected to meet the April 2020 deadline<\/a>.<\/p>\n<\/div>\n
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