‘Lose-lose situation’ as personal injury claims plunge

Mike Benner, the chief executive of the Association of Personal Injury Lawyers (APIL), commented on the troubling trend, stating, “The number of injuries on our roads has not gone down, but there has been a huge drop in compensation claims. What we have here is a cavernous justice gap growing between injuries and claims levels, which means many people who have suffered painful injuries and disruption to their lives are not receiving the compensation they need and deserve."

The decline in claims follows a significant overhaul of the compensation system for whiplash injuries in 2021, aimed at reducing car insurance premiums. However, Benner argues that the reforms have backfired. “The system for claiming compensation for whiplash injuries was overhauled in 2021 in a bid to make car insurance premiums cheaper,” he explained. “It hasn’t worked. And injured people have become the scapegoats, while we’re all actually paying more for our car insurance.”

According to data published by the Department for Transport, road injuries increased by 15% between 2020 and 2023, the year before the reforms and the present. During this same period, registered motor injury claims plummeted by 29%. “Historically, the number of road injuries and the number of personal injury claims have followed each other very closely. That is no longer the case,” Benner noted.

As society emerges from the pandemic, the disparity between rising injuries and falling claims has become stark. “As we have come out of the pandemic lockdowns, injuries have increased but claims haven’t—they have actually fallen significantly. This shows that fewer road injury victims are going on to claim,” he added.

This situation has also led to a significant impact on the insurance industry. “The insurance industry’s costs in relation to injury claims have taken a nosedive because claims have dropped. But most motorists will tell you that their car insurance premiums have rocketed,” Benner pointed out. “It’s a lose-lose situation for injured people.”

As the number of injuries continues to rise while claims dwindle, the implications for those affected by road accidents are concerning. The changing landscape of personal injury compensation raises questions about access to justice and the financial support available for victims of road traffic accidents. Without reform to address this growing justice gap, many individuals may find themselves unable to secure the compensation they rightfully deserve.