2021 Whiplash reform – what these mean for you and your motor insurance

As part of the Civil Liability Act 2018, the whiplash reform came into effect from 31^st May 2021, changing the way low-value road traffic accident claims are processed – here, we outline what this means for you and your motor insurance.

What has changed to the Whiplash regulations?

A fixed tariff system has now been introduced, alongside the Official Injury Claim Service Portal. The portal, developed by the Motor Insurance Bureau on behalf of the Ministry of Justice, will allow claimants to report and settle their own claims without legal representation.

The whiplash reform has changed the way low-value road traffic accident claims are processed with the aim of tackling the high number and cost of whiplash claims seen across the insurance industry. 

The portal will be used for claims where personal injury is less than £5,000 and total damages less than £10,000.

The fixed tariff system is set out below.

For whiplash claims that fall within the parameters of the portal, clients should inform us of the incident and log it on the Official Injury Claim Service portal, here.

Why the change?

The main goal of these changes is to reduce overall claims costs, which ultimately affect insurers’ loss ratios and consequently, clients’ premiums. The phrase ‘compensation culture’ is often used when talking about whiplash claims; the hope is that by removing the need for legal representation on claims that fit within the parameters of the portal, this behaviour and the stigma around such claims will reduce.

The reforms also mean that whiplash claims cannot be settled without medical evidence, which will mean that information about an injury will be required from a GP or hospital. Medical records will assist in showing the extent of an injury as well as when/whether it was recovered from and what treatment was required.

How the changes to whiplash affects you

If you are involved in a road traffic accident, even if you intend to settle with the third party without seeking involvement from your insurer, you must notify us immediately. This is particularly important now as it is now plausible that a third party could raise a whiplash claim without your immediate knowledge and ultimately, any delay in reporting an incident will prejudice your position.

When reporting a claim through the portal system, you will be asked for (as a minimum):

• Any supporting documentation (for example, receipts or reports); it’s important to remember that you won’t get any compensation for damages or losses that don’t have any supporting documentation
• National Insurance Number
• If the police attended the scene, the name and address of the police station, name of the reporting officer and Police Reference Number, if available
• The registration number of the vehicle you were in and/or its make, model and colour
• The registration number of the vehicle you feel is responsible for the accident and any other vehicles involved
• The name of the driver responsible
• The name of any witnesses and, if available, their phone number, email and address
• An estimate of the value of any losses or fees you would like to claim back
• If a bus passenger, details of the bus you were on.

On reporting an incident, you will now be asked to give additional information, which is likely to include a statement and diagram outlining the circumstances of the incident, both of which will need to be verified using a ‘statement of truth’. This may seem over the top if you do not intend to make a claim but providing this information early on will give you the best chance of avoiding an unjust claim and premium increases, should the worst happen. If you have any queries surrounding your motor insurance or the implications the whiplash reform could have when making a claim, please do not hesitate to contact McClarrons motor claims specialist, Mike Seals-Law at michael.sl@mcclarroninsurance.com