Personal Injury reforms in a parallel (park) universe…

The Government is heavily lobbied by a Claimant lawyer sector which has great influence due to the economy’s reliance on the justice system as a source of employment but, more importantly, because of its role in providing the public with direct and affordable access to justice.  

After years of rising motor insurance premiums, with many drivers unable to afford insurance and many uninsured drivers on the road, the Government decides that enough is enough.

They order all insurers to release data relating to premium calculations and full profit breakdowns.

Upon reviewing this, it is decided that insurance premiums are not representative of the risk covered and, after a lengthy finger in the air exercise, premiums are slashed by 60% and fixed. The insurers are told that they will have to make up any shortfall by deducting from policyholders a compulsory excess from any successful recoveries made in non-fault claims which cannot be more than 25% of the recovery made. 

The insurers complain that Claimant lawyers (who are still able to recover standard costs and additional liabilities) continue to charge higher and higher costs for personal injury claims. Claimant lawyers say that these additional costs are due to the deteriorating conduct of defendant insurers who are employing ever more junior staff due to their reduced revenue. 

Claimant lawyers also state that they would not need to charge such costs if it wasn’t for the sharp and unreasonable rise in professional indemnity insurance and commercial buildings and contents insurance premiums. They also bring in to the public eye the pandemic of dodgy insurer tactics employed to avoid payouts wherever possible. Daytime shows such as “Computer Says No” make for compulsive viewing.

As a result the Government slash and fix ALL insurance premiums whilst also banning insurers from being able to refuse compensation payouts in any claims involving minor injuries lasting less than 6 months.

Furthermore, the Government remove the need for compulsory motor insurance and give drivers the option of being self-insured up to £50,000 with all drivers now being responsible for at least the first £5,000 of any claim against them as such claims are deemed ‘small claims’ and, therefore, drivers no longer require financial cover from insurers for such claims. 

Insurers advise the Government that these changes will have serious implications for the economy as they make massive cuts to their workforce and, in turn, their state contributions by way of taxes and rates. In addition, and as a side note, it is also considered unfair to remove and/or restrict a driver’s ability to defend a claim made against them especially when such a claim could see them suffer emotional and financial distress.  

Claimant lawyers assure the public that these latest changes will ensure that law firms are able to offer cheaper legal services to the public as they’ll not have to dedicate as much time and resources to personal injury claims services.  

In the end, insurance claims handlers and defendant AND claimant lawyers across the country are laid off and sign on looking for alternative economic activities, British drivers are left exposed and unable to get justice when unfairly claimed against by another and the country is worse off as a result of a decimated motor insurance industry; and meanwhile the fat cat lawyers loosen their belts.


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