Helping you gear up for the “seismic changes” to low value RTA claims in England and Wales

The market is now set for a frantic three months of development to ensure systems are in place to deal with the claims from 31 May under the new regime.

As Ian Davies, our head of motor, said following the announcement of the new Pre-Action Protocol, Practice Direction and rule changes underpinning the whiplash reforms: “The market is now set for a frantic three months of development to ensure systems are in place to deal with the claims from 31 May under the new regime”.

The material released is detailed and extensive, but still has numerous areas to be clarified and some detail is still awaited. Working out what will impact your own claims is no easy task but do not worry - our dedicated teams are here to support you along the way. This snap shot guide will provide you with the 'need to know' headlines so far.

The headlines

An increase in the small claims limit for RTA claims for personal injury to £5000.
A new portal and all of the system challenges that brings.
The requirement to respond within 30-days of the claim being received with a liability response including a statement of truth.
The introduction of a tariff for soft tissue injuries.
Costs and how the claimant market will respond.

A little more detail...

Increase in the small claims limit

Limit for personal injury claims arising from a RTA occurring on or after 31 May 2021 now £5000 (previously £1000).
Does not apply where: claimant is a child, protected party or vulnerable road user.

Portal

Pre-medical offers where whiplash is involved are prohibited
Upon submission of the Small Claims Notification Form (SCNF) the compensator has 30 days (MIB have 40 days) to provide a liability response which is to include a statement of truth
If the MIB identify a compensator, the compensator must inform the claimant of their involvement. There is no extension to the 40 days
If no response is received within 30 days, the claim is deemed to be admitted and will continue in the portal
Compensator offer must be made within 20 days of receipt of the claimant’s medical evidence and losses
Offers/counter offers to be responded to within 10 days. Maximum three counter offers

Tariff

For soft tissue injuries suffered in RTAs:

Duration of injury	Amount – Regulation 2(1)(a)	Amount – Regulation 2(1)(b)
Not more than 3 months	£240	£260
3 to 6 months	£495	£520
6 to 9 months	£840	£895
9 to 12 months	£1,320	£1,390
12 to 15 months	£2,040	£2,125
15 to 18 months	£3,005	£3,100
18 to 24 months	£4,215	£4,345

Costs

Non-costs bearing until litigation
How will claims be funded – LEI & DBA?

What is next?

There is no doubt that the above will bring huge change. At this stage there are, as expected, a number of grey areas. Every release of information brings a degree of clarity and additional updates will be provided as we approach the implementation deadlines. Although judging by the number of questions on the MIB webinar last week and the MOJ webinar today a great many questions remain unanswered.