Some of my constituents have recently written to me
about their concerns about the Civil Liabilities Bill’s provision to double the
Small Claims Limit for from £1,000 to £2,000 and the impact this could have on
victims of workplace accidents.
After considering carefully the cases put forward
by both sides, I decided to vote in favour of the bill as I believe the
government has put forward a convincing set of arguments for a fair and
proportionate increase in the Small Claims Limit:
- Insurers
have cited disproportionately high costs as proof that the fast track system
was not working well for personal injury claims with a value at the lower end
of the scale
- An
increase in the limit would lead to a decrease in the amount of money paid out
by insurers (as they would not be burdened with paying the claimant’s legal
costs) which could in turn lead to a decrease in insurance premiums
- The
small claims track is seen by many as an efficient system which leads to a more
predictable process for claimants
- Lower
value claims for personal injury, such as whiplash, are simple and
straightforward for a claimant in person to understand
- Support
and assistance is already available to litigants in person
- Impact
of inflation is taken into account
It is also important to note that the main aim of
the Civil Liability Bill is to put an end to what the government sees as the
high number of “minor, exaggerated and fraudulent claims for compensation
resulting from whiplash injuries sustained in road traffic accidents”. The bill
is narrowly defined to deal with whiplash injuries and ministers at the Third
Reading of the bill were keen to stress that claims related to injuries in the
workplace fall outside of the scope of the bill.
I look forward to engaging with the views of other
parliamentarians when the bill return to Parliament for further consideration
of amendments.
