Chris Grayling Says Court Might Increase Small Claims Limit in the Future

UK Justice Secretary Chris Grayling had said that it is possible that courts might decide raising the small claims limit in the future despite refusing to increase it today. According to Grayling, he had listened to the observations of the House of Commons transport select committee and their opinion on retaining the £1,000 threshold regardless of complaints.

1The raising of the small claims limit was the first step in lowering the premiums of car insurance, which was triggered by fraudulent car accidents claims with “ghostly” injuries, namely whiplash injuries, which pay out greatly because it causes severe pain without physical manifestation.

Car insurance companies said that the disproportion of insurance claims to the number of car accidents authorities record is a sign that many fraudsters are taking advantage of the system, which leaves out those who really need their compensation.

According to the House of Commons transport select committee, now is not the time to raise the small claims limit because it will truly make it difficult for those genuinely in need of the insurance and can make it easier for fraudsters to again take advantage of the small claims courts despite having a smaller payout.

Medical Inspection and Check Up

Grayling mentioned that he wanted to make sure insurance companies will encourage their customers to get a medical survey before they get their compensation and share their data on suspected fraud cases to solicitors and lawyers to carry out more effective checks with their clients.

Experts said that by 2014, the UK will have its own independent specialist medical panels that would inspect whiplash cases and other car injuries involving soft tissue injuries. As soon as the government finally consults all concerned health bodies it would make a standardised form of reports and publish the scheme of the new system.

Implications

Lifting the small claims limit will allow insurers to challenge the claimant’s case in court. Grayling also mentioned that the court might lift information fees from lawyers, solicitors and insurance companies in an attempt to bring down the legal costs of challenging a claim.

Many insurers just recompense their customers because legal costs for challenging suspicious claims are more costly than the lump sum repayment they can provide. For more information about the claims process in the case of injury, click here.

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