STATUTORY REVIEW OF THE WHIPLASH INJURY REGULATIONS 2021

On November 20 2024, the Lord Chancellor published the three-year Statutory Review of The Whiplash Injury Regulations 2021 introduced as part of the Civil Liability Act 2018.

The review maintains the existing split structure of the Whiplash Tariff (Tariff) but proposes an uplift of approximately 15% to account for inflation up to May 2024 and forecasted inflation to May 2027. This increase has raised concerns as it appears to fall short of actual inflation rates, meaning injured individuals will likely receive reduced compensation in real terms compared to the amounts provided when the Reforms were implemented in 2021. 

Consolidation in the personal injury sector

The Lord Chancellor’s report also highlighted significant consolidation within the personal injury sector, with fewer law firms operating post-Reform due to mergers and market exits.
 
Additionally, the OIC service, which facilitates claims, remains a platform that does not make claims decisions; instead, decisions are made by compensators managing the claims. Despite these developments, there have been no improvements to the OIC portal.

What next?

The review recommendations are subject to consultation with the Lady Chief Justice, and are expected to conclude in around eight weeks, followed by parliamentary debate and regulatory implementation. As such, no date has been set for the enactment of the revised Tariffs. Once implemented, the changes will apply only to claims arising from accidents occurring after the commencement of the new Tariffs.

Whilst the Tariff revisions are yet to be finalised, the Lord Chancellor has decided to make no other changes to the regulations.

Having been in operation for over three years, the OIC portal experiences the same issues as at launch, with a complex process and lengthy settlement times still hampering the core purpose of the portal, which was to strip out complexity, settle claims quickly and reduce motor insurance premiums.  

Comprehensive cover

Our Motor Legal Expenses Insurance solution continues to ensure quality representation for claimants by partnering with leading solicitors who provide high standards of service, advice, and representation. Despite the intention for the OIC portal to allow self-service, the process remains complex, hence just under 90% of claimants having representation during the process, highlighting the importance of the product and the service it providers.
 
Our product has been designed to provide comprehensive cover, with all the legal costs covered under the policy with no deductions to compensation awards. This is a key distinction from private representation and other Legal Expenses Insurance policies which can offer inadequate levels of cover and service.
 
Personal Injury cases remain complex to pursue, whether via the OIC Portal or otherwise, and therefore a value-led Motor Legal Expenses Insurance policy remains a valuable addition to motor insurance cover.
To find out more about our products and services, please contact your Partnerships Manager or email enquiries@arclegal.co.uk.