Oral Answers to Questions

Shailesh Vara Excerpts

Tuesday 12th November 2013 Commons Chamber

[Margot James (Stourbridge) (Con)]

8. What steps he has taken to reduce motor insurance fraud to help motorists with the costs of driving.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

On 23 October the Government announced a package of reforms to ensure the availability of good-quality medical evidence in whiplash cases. Our reforms will create a robust system that deters speculative and fraudulent claims. They will lead to reduced costs for insurers and lower premiums for honest motorists.

[Andrew Jones]

I thank the Minister for that reply. How will he ensure that the medical panels are independent and will help to stop bogus claims?

[Mr Vara]

I can assure my hon. Friend that our reforms will see experts commissioned jointly by both the claimant and the defendant and paid regardless of the outcome of the claim. The measures will help ensure independence, and the new examination and reporting scheme will result in fewer speculative and fraudulent claims.

[Margot James]

A constituent of mine was involved in an accident in which the car in front of her made an emergency stop. She swerved to avoid it and the two vehicles made contact without significant impact, yet her insurers agreed to pay out a £4,000 claim for whiplash, which could not possibly have resulted from the accident, without informing her, let alone consulting her. Will my hon. Friend look into the case to see whether there are wider lessons to be learnt?

[Mr Vara]

My hon. Friend will appreciate that I am unable to comment on individual cases and am not aware of any plans by the insurance industry to make information of that sort available. However, I can say that I very much hope that the reforms we are putting in place will ensure that fraudulent and speculative claims of the sort she refers to are weeded out in the first instance.

[Mr Nigel Dodds (Belfast North) (DUP)]

Has the Minister made any assessment of the different levels of fraudulent claims in the regions of the United Kingdom? Has he discussed the issue with the Northern Ireland Executive, particularly given that many of the insurance firms are based in the rest of the United Kingdom, rather than Northern Ireland, where it is a major issue?

[Mr Vara]

I am aware of certain figures showing that some areas have a higher propensity for claims than others. We are in the process of consulting a broad spectrum of stakeholders. If there are any we have missed, I am more than happy for the right hon. Gentleman to contact me so that we can include them.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Did the Minister read the e-mail sent to us both yesterday by the victim of a whiplash sting? His insurer, without consulting him or any medical evidence, paid out £2,700, £1,600 of which went to a claims management company, and then more than doubled his premium. Rather than blaming genuine victims for the cost of motor insurance, why has the Minister not tackled the claims management companies and insurers whose actions encourage fraud? Is it because of the millions they give the Tory party every year?

[Mr Vara]

The hon. Gentleman is clearly out of date. If he did his research properly, he would be aware that since January this year 800 CMCs have closed. This is an issue where we are trying to do good and where all stakeholders are working together for the greater good of the public. It is regrettable that he is resorting to type and cannot recognise that he should be working to do good rather than being his usual destructive self.

[Harriett Baldwin (West Worcestershire) (Con)]

6. What steps he has taken to increase the voice of victims in the criminal justice system.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

The Law Society is one of 10 approved regulators for which the Legal Services Board has oversight responsibility. It is independent of the Government. The Solicitors Regulation Authority is responsible for investigating alleged breaches of its conduct principles.

[Simon Danczuk]

I raise this question because my constituent Paul Cowdrey now risks losing his home because the Law Society advised him that if he raised his complaint he would not be liable for costs. He has now been ordered to pay more than £100,000 to the solicitor whom he complained about. The Solicitors Regulation Authority condemned the solicitor’s actions as morally reprehensible, but claimed it was unable to take action. Does the Minister agree that a regulator that is unable to prevent solicitors from abusing their position is not fit for purpose, and will he investigate this case on behalf of my constituent?

[Mr Vara]

I am well aware that this is an ongoing case about which the hon. Gentleman corresponded with my predecessor. However, the legal regulators and the legal ombudsman are independent of the Government and neither the Justice Secretary nor any of his Ministers have the power to intervene and it would be inappropriate for us to do so in any individual case. The hon. Gentleman’s constituent, Mr Cowdrey, needs to take independent legal advice.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend agree that the primary role of the Law Society is to represent solicitors, and that the proper channel for consumer complaints is the Legal Ombudsman?

[Mr Vara]

Various channels are available for those dealing with the conduct of solicitors, as well as the service provided by them. Yes, there is provision and appropriate methods that need to be pursued.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

11. What his policy is on the future of the probation service.

--- Later in debate ---

[John Pugh (Southport) (LD)]

20. What progress he has made on his reforms to the treatment of whiplash claims; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

On 23 October, the Government announced a package of reforms to ensure the availability of good-quality medical evidence in whiplash cases. Our reforms will create a robust and independent system of accredited experts to help the genuinely injured, and deter dishonest claimants from making claims.

[John Pugh]

I congratulate the Government on all they have done, which has been encouraging, but when will the number of whiplash cases in the UK reach anything like the EU average?

[Mr Vara]

The purpose of the measures is to try to ensure a reduction in the number of whiplash claims. At the moment, we have the highest whiplash claims in Europe. Given the quality of driving in some other countries—I will not name them—we have to accept that the number of whiplash claims is seriously flawed. That is what we are trying to address, and that is why we are introducing these measures.

[James Morris (Halesowen and Rowley Regis) (Con)]

23. What steps he has taken to reduce reoffending and relieve pressure on the courts system.

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

A previous Justice Minister announced in a Westminster Hall debate that I secured just over a year ago that the Office of the Public Guardian had launched a fundamental review of the supervision of court-appointed deputies. Will the Minister tell us what changes will be made as a result of that review?

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

This is an ongoing matter, and we are looking into it. I am happy to take on any comments that the hon. Gentleman might have, and I will look into it.

[Sarah Champion (Rotherham) (Lab)]

South Yorkshire probation trust has reduced its reoffending rate by 13.4% over its target, and it attributes that in part to its use of impact teams. However, privatisation is likely to blow apart that collaborative working. Why are the Government pushing ahead with that plan?

--- Later in debate ---

[Stephen Lloyd (Eastbourne) (LD)]

Last week, a devastating report entitled “The Payment of Tribunal Awards” was published. It found that less than 50% of people received full payment of an award following a successful employment tribunal. Does the Minister agree that more needs to be done to enforce these claims? Will he meet me, my colleagues on the all-party parliamentary group on citizens advice and representatives from Citizens Advice to find ways to resolve this shocking injustice?

[Mr Vara]

I am, of course, happy to meet my hon. Friend and his constituents. I would say, however, that in the context of the tribunal, there are two individual parties and none of the damages is owed to the state, so we have to be careful. We can provide advice and, where possible, assistance, but at the end of the day, enforcement has to be dealt with by the two parties concerned. As I say, I would be happy to see my hon. Friend.

--- Later in debate ---

[Robert Flello (Stoke-on-Trent South) (Lab)]

My moustache and I are most grateful, Mr Speaker. More seriously, I remain optimistic that the Secretary of State will have a change of heart over Fenton town hall, which was used by the magistrates, and give it back to the people of Stoke-on-Trent. If he does not, what assurances can he give that the buyer that we think is waiting in the wings and subsequent purchasers will protect the first world war memorial that is located in that building? Many thousands of people are concerned about its future.

[Mr Vara]

I commend the hon. Gentleman for his patience. I can assure him that, in the event of any transfers of the building, there will be a covenant to ensure that the new owner preserves that very important and historic monument, which is a tribute to all who paid the ultimate price in the first world war.