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The recently released Motor Insurance and Whiplash Report, by the Transport Select Committee’s Cost, has sparked a reaction from both sides of the personal injury industry. The report, which was awaited by the media and many blogs, made several recommendations and has sent waves throughout many online news sources and social media. The main points of the report suggested that Ministers should consider a reduction in the limitation period when it comes to road accident insurance claims, as well as an increase in the small claims track limit, and a requirement for whiplash claimants to provide more supporting evidence to their claims. The general consensus seems to be that the insurance companies need to stop looking for scapegoats and instead concentrate on "getting their house in order". It was agreed on the LinkedIn page of the Motor Accident Solicitors Society (MASS) that increasing the small claims track limit up to £5000 would be not be in the interest of justice and would in fact make it less accessible. Craig Budsworth from MAAS said: "Having listened to the evidence from all sides of the debate, the Committee has produced a considered and thoughtful response to the problems of fraudulent or exaggerated claims." Meanwhile, Chief Executive of the Association of personal injury lawyers, Deborah Evans, says she thinks the committee has owned up to the fact the government has been mainly on the insurers’ side so far, and has said the insurers "must get their house in order". Evans said: "The issue of whiplash claims and their effect on premiums has been subject to much propaganda. But the committee recognises that the number of claims has fallen, and that reports of the level of fraudulent claims are essentially based on guesswork." Neil Rose, Editor of Litigation Futures, says the report has been a "nasty surprise to the insurance industry, which has very much held the whip hand to date". Rose also agrees with the recommendation to not increase the small claims track, as he supports the opinion that the general public "is not ready to self-represent en masse" and the result would not actually make it any easier to protect from fraud, which is what had been suggested previously. Desmond Hudson, Chief Executive from the Law Society, spoke to the Law Gazette on the matter. He said: "It's time that insurance companies stopped blaming everyone else, be it government, lawyers or their own customers, and instead concentrated on getting their own house in order." He summed up the committee’s evaluation by saying that insurance companies and their current practises actually encourage fraud or exaggerated claims. There were some mixed opinions from the Association of British Insurers’ Head of Motor and Liability, James Dalton, who was disappointed about the committee’s recommendation not to increase the small claims track, as he viewed this step as "vitally needed".
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