Preparing for Whiplash reforms

The UK Government legislation which paves the way for ‘Whiplash reforms” will take effect on or after 31st May 2021. 

‘Whiplash reforms’ is the commonly-used term for the package of measures introduced by the Government to reform the way low-value personal injury claims arising from Road Traffic Accidents (RTA) are managed.  It provides insurers with the procedural framework for all claims that will fall within the new Official Injury Claim (OIC) portal.

Reduced whiplash tariffs/payments 

The new tariffs introduced will significantly reduce awards for whiplash injuries in comparison to current levels. The existing guidelines places whiplash injuries of 3-12 month duration negotiable between £2,300-£4,080 compared to the new tariff range for injuries of the same duration of between £240-£1,390.

It is important to note that the tariff relates solely to a whiplash injury which is defined as "an injury of soft tissue in the neck, back or shoulder that is… a sprain, strain, tear, rupture or lesser damage of a muscle, tendon or ligament in the neck, back or shoulder, or an injury of soft tissue associated with a muscle, tendon or ligament in the neck, back or shoulder."

In the event that a claimant suffers whiplash and additional other minor injuries, such as a sprained knee or thumb, a decision by the judiciary will ultimately be required as to how to value these cases in reference to what is a fair assessment of the overall level of pain and suffering experienced by the claimant. As such the exact level of indemnity savings that may be derived from the reforms are difficult to predict at this stage.

We recently ran a webinar on this topic, if you missed it, or wish to re-watch it, click below.

 

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