Chancellor George Osborne has announced plans to raise the small claims court limit from £1000 to £5000 to address minor soft tissue personal injuries caused by motor accidents. The plans were to help the insurance industry recuperate from losing almost £2 billion yearly from exaggerated and fraudulent claims. Motorists are also forced to pay an additional £90 in insurance premiums because of the large illicit payouts to exaggerators.
The Law Society condemned the proposal, stating that victims will not have sufficient legal advice as they step into the small claims court. According to analysts, the £5000 limit will not guarantee legal representation as the defending insurer will not pay for your legal representative.
According to analysts, the small claims process is also insufficient in dissecting all aspects of personal injury involved.
The Law Society also condemned the proposals as it would disable legal assistance for many victims. Victims without any previous experience of claiming for an injury will have no proper idea of their injury’s value. It would also mean defending insurers can compress everything below £5000 for your injuries.
It would also force many victims to settle their claims with the insurer without any legal advice.