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Dear Mr Rooney,
Thank you for contacting me about the changes on insurance claims in relation to whiplash claimants.
Just as a bit of overall background to this, here in the UK, whiplash claims are 50 per cent higher than a decade ago, despite the UK having some of the safest roads in Europe and a fall in the number of accidents, so these changes have been intended to end the cycle in which responsible motorists pay higher premiums to cover false claims by others. The Government expects the insurance industry to pass on to consumers an average saving of £35 per policy.
As I understand it, Ministers are proposing an increase to the upper limit for small claims from £1,000 to £5,000, allowing more people with injuries to access the court not fewer. The plans also include the introduction of a transparent tariff system of compensation payments for claims with more significant injuries. On injury victims having to pay their own legal costs under the new system, I'll get that followed up with the Justice Secretary, David Gauke. We don't want to have a system that discourages walking or cycling as you say, and I agree that it would be unfair to deny VRUs the opportunity to claim appropriate compensation for injuries that were not their fault. I'll let you know once I've heard back from Mr Gauke.
Best wishes,
Justine Greening MP