The UK’s Ministry of Justice has confirmed its decision to delay the implementation of the Whiplash Reform Programme until April 2021, citing unprecedented disruption caused by the ongoing coronavirus pandemic.
Under the Programme, small claims track limit for road traffic accident related personal injury claims will be increased to £5,000; while a fixed tariff of damages for pain, suffering and loss of amenity for whiplash injuries will be introduced.
The programme will introduce a ban on the making or accepting of offers to settle a whiplash claim without a medical report.
The Government had previously decided to implement the whiplash reforms in August 2020.
The government said that while the whiplash reform measures remain important, it is committed to easing the disruption and pressures caused by the COVID-19 outbreak where it can.
Commenting on the announcement, James Dalton, Director of General Insurance at ABI, said that, given the unprecedented situation, he can understand that a delay to implementing these reforms is necessary.
However, he stated that any delay beyond what is absolutely needed will impact on the benefits to claimants and consumers.
“As an industry we remain committed to continuing to support the Ministry of Justice so that the reforms can be introduced as soon as it is practical to do so,” he said.
