Civil Liability Bill [HL]

Earl of Kinnoull Excerpts

Committee: 1st sitting (Hansard): House of Lords
Thursday 10th May 2018 Lords Chamber

Moved by

[The Earl of Kinnoull]

1: Clause 1, page 1, line 5, leave out subsection (1) and insert—
“(1) In this Part, “whiplash injury” means an injury or set of injuries resulting in soft tissue damage, usually of the neck, back or shoulder, arising out of a motor accident, which presents symptoms which may include pain and aches (including pain of the jaw, neck, back, and shooting pains in the neck, shoulder or arms), headaches, stiffness, fatigue, dizziness, swelling, bruising, tenderness or muscle spasms.”

[The Earl of Kinnoull (CB)]

My Lords, in moving Amendment 1, I declare my interests as set out in the register of the House, in particular those in the insurance industry. I am going to speak briefly to three propositions. First, a definition of “whiplash” should appear on the face of the Bill. Secondly, that definition should be wide. Thirdly, it should be amendable without having to resort to primary legislation, but with parliamentary oversight.

I turn to the first of those propositions. My work has been made much easier by the 22nd report of the excellent Delegated Powers and Regulatory Reform Committee. The committee is excellent as well as the report. It says at paragraph 9:

“We take the view that it would be an inappropriate delegation of power for ‘whiplash injury’, a concept central to a full understanding of the Bill, to be defined in regulations made by Ministers rather than being defined on the face of the Bill”.


I very much agree. It is particularly curious to me that there is no definition, because there are so many definitions of whiplash floating around, not least in the pre-action protocol for low-value personal injury claims for motor accidents and indeed in the draft regulations that appeared within the last 48 hours for this Bill. I therefore can see no reason why there should not be a definition on the face of the Bill. I am looking forward to hearing from the Minister whether he might see that one was, in fact, appropriate.

There are two problems with the width issue. The first is that, if the width is narrow—and a whiplash motor accident normally involves several minor injuries to the person involved—we are in the position where a tariff applies to a selection of injuries but maybe not all of them. That would be to the advantage of what I call the claims industry. Aviva, in its briefing to all Peers before the Second Reading, estimates out of whiplash alone to make £500 million a year. It is unbelievably inventive and supple. This morning, I was looking at one of the principal websites, and I will read a bit from it out as it will show just how much the meaning of the word “whiplash” has been stretched:

“Symptoms can include dizziness, blurred vision, disorientation, tiredness, poor concentration, memory loss, nausea, pins and needles in the arms and hands, muscle spasms and pain in the lower back”.


Later on, there is a rather curious sentence:

“Even if you don’t experience any symptoms straightaway, don’t rule out the possibility that you’ve suffered this type of injury”.


That is the sort of entity that, in fact, is doing great damage to the general population. It has increased motor insurance premiums. They are highly intelligent and well funded. I really feel width is important.

There is a second point on width. For the honest claimant, having clarity—so there is one tariff for one sum of money, and so they can fill in the online portals for a claim—is greatly to their advantage. If they have to fill in one online portal to sort out part of their heads of claims, and then no doubt head off to the one of the companies I was referring to, there would be greater chaos and we will not have tried, through legislation, to improve society.

I turn quickly to the point about the importance of it all being amendable. I regret that we will always be playing catch-up with the claims industry. This is not the first attempt to cope with the burgeoning whiplash problem. I remind the House that, even today, 1% of the population every year has a successful whiplash claim, on average—that is 30 times what happens in France. It is a problem that is out of control; we heard many examples of that at Second Reading. There is an enormous prize in having flexibility and, accordingly, I beg to move.

[The Lord Speaker (Lord Fowler)]

My Lords, I should inform the Committee that if Amendment 1 is agreed to, I will be unable to call Amendments 3 to 5 by reason of pre-emption.

--- Later in debate ---

[The Advocate-General for Scotland (Lord Keen of Elie) (Con)]

My Lords, I am obliged for all the contributions that have been made so far this morning. I observe that it appears to be generally recognised that the Bill is addressing a very real issue about which policy decisions have to be made and implemented. I quite understand the question raised about where the definition of whiplash injury should appear. The definition in the Bill seeks to limit injuries to those soft tissue injuries that affect the neck, back or shoulder and arise from road traffic accidents. The vires in the Bill are tightly drawn to enable regulations to be made by the Lord Chancellor that would apply only to a discrete number and type of injury.

It is interesting to see the diversity of amendments that have come forward this morning. That may underline the particular challenge we face in arriving at a suitable definition, be it in the Bill or in regulation. We have sought to address an issue that involves reconciling a legal understanding of this matter with a medical definition—one which covers both injury and the symptoms of injury. That involves us engaging with not only medical expertise but a degree of legal expertise. In addition, while I am not going to go through the detail of every amendment, because I understand what lies behind them, I will note this much. The noble Earl, Lord Kinnoull, set out three points for consideration, and in doing so underlined the very real problem that we need to address here. It was emphasised by the suggestion that if you go to a particular claims management site you are encouraged to believe that even if you have no symptoms you may still have a claim.

I was reminded of an incident some years ago where I was acting for an American pharmaceutical company. The US attorneys showed me a photograph of a genuine roadside sign that had been erected in the state of Mississippi. It said, “If you’ve taken drug X and suffered a fatal heart attack, telephone this number”. The lengths to which we lawyers will go know no bounds, and our belief in the Almighty is always there. There is a very real industry out there. I do not use the term “racket”, but others have—and with some justification.

Looking to the current position, the noble Lord, Lord Sharkey, correctly observed that the regulations that we have produced in draft to elaborate the definition of whiplash injury have only just appeared. I quite understand the need for noble Lords to consider those regulations in more detail. In turn, I will consider in more detail whether we should incorporate a more precise definition in the Bill. But I stress that, even if we were to take that step, it would be necessary for us to bear in mind the ability of government to proceed by way of regulations to support any definition in the Bill. We are well aware that flexibility will be required with regard to any final definition so that we can meet the way in which claims development occurs—the way in which this sort of market develops—in order to put limitations on claims.

At the end of the day, the detailed definition of whiplash injury will need to reconcile the current legal understanding with an accurate medical definition covering both injury and symptoms. Our aim is to achieve that objective, but to what extent we achieve it by incorporating the definition in the Bill is not a matter on which I would take a final position. I quite understand the suggestion that we should consider further the extent to which the definition can appear on the face of the Bill, and also allow noble Lords the opportunity to consider the scope of the draft regulation that has only recently been made available. In the light of that, and understanding that these are essentially probing amendments, I invite noble Lords not to press them at this time.

[The Earl of Kinnoull]

My Lords, I am grateful for those last few sentences from the Minister, which were very helpful and reflect the strong mood of the House. I must say that if we had had a brief fee clock going, with the number of very expensive lawyers here, it would have been going round quite rapidly. I will make one point, following what the noble Baroness, Lady Berridge, said. I too am a non-practising barrister, but I would never do anything to suggest that advocacy was not valuable. Advocates are immensely valuable in our justice system.

I do, of course, have experience of sitting on the other side of the table from the “claims industry”, as I term it—and the last thing those people want is an advocate in the mix. Most of their companies do not employ that many lawyers: some companies have no lawyers at all, or just one on their writing paper. They want a paper-based or telephone-based operation, in order to process things as cheaply as possible. This would actually help advocacy, because it would try to push things back into the proper legal market and away from companies that have been commoditising the rather grubby process of grabbing money. But, on the basis of what the Minister has said, and knowing that we will be having discussions with a view to bringing forward some sort of amendment on the definition—no doubt several noble Lords who have spoken today will be involved—I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

--- Later in debate ---

[The Earl of Kinnoull]

My Lords, I rise to speak to Amendments 15 to 20 and to explain why leaving out the word “psychological” benefits the Bill. As currently drafted, the Bill captures soft tissue injury and minor psychological injury only. If a claimant sustained a whiplash injury and, say, a bruise on their knee at the same time in an accident, the bruised knee would not be captured by the definition, which is limited to neck, back and shoulder in the current Clause 1. Damages for the bruised knee would therefore fall outside the tariff damages but would remain compensatable under common law. As I said earlier, there is a great prize for simplicity here, for being able, as an honest and genuine litigant, to go to a web portal to fill a claim and have predictability about what you are going to get. We will no doubt discuss the tariff a lot later on today. By removing the word “psychological” we bring minor injuries into the tariff so that if you have an accident and get a set of minor injuries, which we loosely call whiplash injuries, but which include bruised knees, you know what you are going to get and there would be a simple web way of doing it. We have tried to do that, and that is the sole reason for removing “psychological”. It would mean that injuries without the word “psychological” include psychological injuries. In fact, the definition I referred to earlier on the pre-action protocol for small bodily injury claims specifically includes psychological injuries. I think I have made the point.