Transport select committee announces whiplash inquiry

The transport select committee has announced this morning that it is launching an inquiry into whiplash claims and the government’s proposed crackdown.

Claimant lawyers reacted angrily to MoJ proposals to cut whiplash claims by increasing the small claims limit for personal injury cases from £1,000 to £5,000. Consultation on the plans closed earlier this month.

Louise Ellman MP, chair of the select committee, said: “It is vitally important for policymakers to understand the reasons for the very high cost of motor insurance, especially for young drivers, and to take steps to bring that cost down.

“Whiplash claims undoubtedly play a part in driving up the cost of motor insurance, but access to justice for injured people must be preserved.

“We want to hear the arguments on these points and will publish a report in the summer about the best way forward on this difficult issue.”

The select committee is calling for written submissions by April 15.

A spokesman for MASS welcomed the announcement and said the issue of whiplash required “sophisticated and holistic solutions rather than simple headlines”.

Meanwhile MASS criticised the Association of British Insurers for changing its stance on the small claims limit.

The society said it was “particularly disappointed in the ABI’s U-turn following their response to the Jackson review in which they rightly said the small claims limit should not be increased until after the proposed reforms had bedded in. “Jackson concluded that the small claims limit should not be increased at this time and MASS has consistently agreed with this.”

However, the society said it agreed with the ABI that every claimant should be assessed by an independent, accredited medical expert.