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The Whiplash Reforms – are you ready?

Following a government review into motor personal injury claims, the Ministry of Justice is introducing reforms that come in to effect from 31 May 2021.

The new reforms will only be applied to adults injured as a result of an RTA on or after 31 May in England and Wales.

It introduces fixed fee damages for whiplash claims and increases the claims managed through the small claims track from £1,000 to £5,000.

As a result, the margins earned by law firms are being slashed and they are reviewing their business models, with some working on a percentage of damages basis rather than the higher earnings they have enjoyed in the past.

This will inevitably have an impact on the arrangements you have in place for providing motor legal expenses to your customers, the service your FNOL providers provide and any income you receive off the back of any legal services provided.

If you are currently reviewing your needs, please get in touch to see what solutions we are able to provide for you.


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