Oral Answers to Questions

Luke Hall Excerpts

Tuesday 7th March 2017 Commons Chamber

[Elizabeth Truss]

My hon. Friend makes the point that there are different issues around the discount rate and whiplash. The measures on whiplash in the Prisons and Courts Bill should reduce insurance premiums by, on average, £40. The issue about the discount rate is very different: it is an independent decision that the Lord Chancellor has to make. I am saying that we need to review the way that decision is made, and I will be bringing forward a consultation on that very shortly.

[Luke Hall (Thornbury and Yate) (Con)]

4. What progress has been made on ensuring that only legitimate whiplash claims are successful.

[The Minister for Courts and Justice (Sir Oliver Heald)]

Measures to disincentivise minor, exaggerated and fraudulent whiplash claims are being taken forward in the Prisons and Courts Bill and through changes to reduce the cost of litigation by increasing the small claims limit.

[Luke Hall]

Whiplash claims have increased by 50% over the past decade, at a time when cars are becoming safer and the number of road traffic accidents is falling. Does my right hon. and learned Friend agree that it is time for reform? Can he confirm the extent to which consumers will benefit through lower car insurance premiums, and how does he intend to hold insurance companies to their side of the bargain?

[Sir Oliver Heald]

My hon. Friend is absolutely right to point to the fact that as cars have become safer there have been fewer road traffic accidents. It is shocking that whiplash cases have gone up by over 50% in the past 10 years. The reforms I mentioned will, taken together as a package, ensure that the genuinely injured receive compensation, and fraudulent and exaggerated claims are tackled.