CILEX criticises whiplash compensation as "derisory and unfair"
By Law News
The Chartered Institute of Legal Executives (CILEX) condemns the current whiplash compensation system as inadequate and unjust, arguing that it fails to adequately compensate claimants for their pain, suffering, and loss of amenity (PSLA)
CILEX contends that the existing tariff system, which categorises whiplash cases based on the presence of minor psychological injuries, is flawed. According to CILEX, any psychological injury should be exempt from the tariff due to its complexity and potential long-term impact on claimants and their families. Additionally, it suggests that whiplash injuries lasting over three months should also be excluded from the tariff, given their likely complexity and indefinite duration.
In response to the Ministry of Justice's call for evidence regarding the whiplash tariff review, CILEX proposes a standardised 10% uplift in compensation for all injury durations where psychological injury is present. This adjustment, it argues, would better reflect the complexity of psychological injuries and align with current legal practices.
Moreover, CILEX raises concerns about the lack of differentiation in the tariff between the prognoses for physical and psychological injuries. It highlights the discrepancy between the severity and long-term effects of psychological injuries compared to physical ones, suggesting that the tariff fails to adequately address this issue.
With over 2,700 members working in personal injury, CILEX reports a decline in whiplash settlements since the introduction of the tariff. This decline, coupled with law firms withdrawing from personal injury work due to economic concerns, underscores the challenges posed by the current compensation structure.
Despite expectations of reduced insurance premiums following the introduction of the Official Injury Claim portal three years ago, premiums have instead risen by 34%. CILEX President Emma Davies criticises the system's failure to reflect the true impact of psychological injuries and calls for cases involving verifiable psychological injury alongside whiplash to be exempt from the tariff entirely.
In essence, CILEX's stance underscores the urgent need for reforms in whiplash compensation to ensure fair and just outcomes for injured parties.