Personal Injury Claims: Motor Vehicle Incidents

Viscount Hailsham Excerpts

Wednesday 1st March 2017 Lords Chamber

[Lord Keen of Elie]

My Lords, there are two distinct issues to be addressed in this context. The reforms with regard to whiplash will, on the basis of completed impact assessments, result in very considerable savings in motor insurance premiums of the order of £1 billion. It is estimated by the industry that this will result in an average reduction in motor insurance premiums of about £40. The major operators within the motor insurance industry have undertaken to pass those savings on to the motorist, the consumer. However, the changes in the discount rate will inevitably impact on the cost of insurance, including motor insurance, and that will give rise to certain increases. One may offset the other, but I add that the Lord Chancellor indicated when announcing the change to the discount rate that this will be the subject of consideration and indeed a consultation, which is due to commence no later than Easter.

[Viscount Hailsham (Con)]

My Lords, I begin with a declaration of interest: I do not now practise as a personal injury lawyer but I have done in the past. Does my noble and learned friend recognise that the reduction in the Ogden tables to a discount rate of minus 0.75 will inflate the damages that are recoverable in personal injury cases to an extravagant and unconscionable extent, which is bound to inflate the numbers of fraudulent or unjustified personal injury cases in motor claims to the prejudice of all drivers? That being so, may I welcome the fact that these proposals are going to be looked at again, I hope constructively?

[Lord Keen of Elie]

My Lords, the way in which the discount rate is calculated will be examined with some degree of urgency. However, I do not accept that the discount rate will result in the inflation of the value of damages claims. It was designed originally to ensure that those claims would be properly calculated so that those who suffer life-changing injuries are properly compensated for the future.

Serious Disturbance at HM Prison Birmingham

Viscount Hailsham Excerpts

Monday 19th December 2016 Lords Chamber

[Viscount Hailsham (Con)]

My Lords, while those who have been involved in the disturbances must clearly be punished appropriately, does my noble and learned friend accept that what has happened demonstrates the evils associated with overcrowding and the lack of purposeful activity? Does he agree that we must take urgent steps to reduce the prison population? In the short term, I suggest an urgent review of all the IPP prisoners who have served their tariff. I also suggest that he consider executive release for those short-term prisoners who have served a substantial part of their predicted period in custody.

[Lord Keen of Elie]

I am obliged to my noble friend. With regard to those serving IPP sentences, further considerable progress is being made. For the first time, during 2015, more than 500 IPP prisoners were released, compared with only 200 or 300 in previous years. In 2015-16, 38% of IPP oral hearings completed by the Parole Board resulted in a release decision. For the first time, the number of IPP prisoners has fallen below 4,000, and we are continuing to increase our efforts with regard to those prisoners. So far as the prison population is concerned, there are from time to time strains; there are from time to time pressures on prison capacity. However, as I have said, steps are already being taken in the form of the opening of new prison estate in the new year, which will relieve any such pressure. On sentencing policy, there are no further steps at this stage that I can comment on, but clearly we have in consideration the question of how the prison population is maintained. So far as work is concerned, increased efforts have been made to provide useful, constructive work for those within the prison estate, not only so that they can work during their period of sentence but so that they have an opportunity to move into work as they move through the gate of the prison at the end of their sentence. However, we must remember that something like half the prison population enter prison with unacceptable levels of numeracy and literacy. There are formidable challenges ahead. We are prepared to meet them—and intend to.