In 2015 George Osborne launched a consultation on proposals to reduce the number of whiplash claims due to the ‘unacceptable’ claims culture, seeing a mounting increase in the number of whiplash claims made across England and Wales by motorists.


Now The Ministry of Justice have taken the first step in making it more difficult to make fraudulent or low level claims. Closing in on the rising exploitation of the compensation market.


Whiplash is one of the most common personal injury claims, and everyday there are over 1,500 claims in the UK. The insurance industry spend more than £2 billion per annum – this is the reason the average motorists has to pay £90 more on top of their yearly insurance premiums.


The legal fees that are associated with these claims are always on the increase and create higher costs for insurers and in turn more expensive insurance premiums for consumers. The claims are 50% higher than ten years ago even though the number of accidents has fallen and the fact that our UK roads have some of the safest in Europe.


But with the crackdown insurers have pledged to pass on savings to drivers, which is worth the sum of 1 billion pounds. The consultation paper states that it will do away with the right to compensation or put a cap on claims for low level or minor whiplash injuries, cutting the average payout from £1,850 to around £425 and only if there is medical evidence of proof of injury.


The consultation also outlines –


  • Introducing a tariff system for more significant injuries
  • Raising the limit of personal injury claims from £1000 – £5000
  • Ban on claims without medical evidence


The Justice Secretary has said this –

“For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists.

These reforms will crack down on minor, exaggerated and fraudulent claims. Insurers have promised to put the cash saved back in the pockets of the country’s drivers.”


By enforcing these new rules the whiplash epidemic will begin to dwindle as claims will be governed by a strict process and become hard earned for those who are fraudulent or have no physical evidence of injury.