Oral Answers to Questions

Debate between Dominic Raab and Yvonne Fovargue

Tuesday 26th April 2016 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

4. What assessment he has made of the potential effect of planned changes to personal injury law and whiplash claims on access to justice.

[The Parliamentary Under-Secretary of State for Justice (Mr Dominic Raab)]

The Government remain concerned about the number and cost of whiplash claims, and in particular the risk that unmeritorious claims push up the cost of insurance for customers. New proposals have been announced. We will consult on them in due course, and they will be accompanied by an impact assessment.

[Yvonne Fovargue]

There still appears to be no independent verification of the fraud culture and pandemic of claims cited in the autumn statement as the reason to raise the small claims limit for personal injury. In fact, not one motor insurer even mentioned fraud as a material risk when reporting their annual returns to the stock market. What independent evidence does the Minister have of a fraud culture? Would it not be more effective to legislate to stop the ambulance-chasing claims management companies making unsolicited calls, rather than denying justice to those who have been injured through no fault of their own?

[Mr Raab]

We should address both angles. The Chancellor has already announced proposals to remove the right to claim damages for pain and suffering for very minor claims and to increase the small claims limit to £5,000. That is important, as it will help us cut the cost of resolving cases. As I said, we will consult on the reforms, but, critically, they will save the insurance industry £1 billion annually. The industry is committed to passing those savings on to customers, which will reduce premiums by £50.