The personal injury sector will potentially take yet another hit under the Government’s intention to increase the small claims limit from £1,000 to £5,000.
A move as drastic as the one proposed by George Osborne will have a devastating impact on personal injury claims and a Claimant’s ability to claim compensation. Around 95% of personal injury claims would fall below the £5,000 threshold, which means in the future, should a person fall victim to an act of negligence in which compensation for personal injury is sought, then their claim will be affected.
Whether you are a victim of a road traffic accident, had a slip/trip or fall or have had an accident at work you are able to claim compensation for those injuries you have sustained through no fault of your own. These would fall within a minor to moderate bracket and will include for example injuries such as a fracture to your wrist, a broken nose, a soft tissue injury to your back or neck, whiplash, a fracture to your finger, the loss of a tooth, fracture to your thumb and food poisoning.
By increasing the limit of small claims to £5,000 means that thousands of victims, like you, will lose their right to claim the cost of legal advice in pursuing those claims. As a result you will have to deal with the claim on your own.
If the small claims court limit is raised to £5,000 genuine victims of injury would not be able to afford the legal help they need to bring their claim. It is those that are vulnerable to the insurance companies whose job it is to award the lowest amount of compensation to you and therefore you are at risk of not getting the full amount of compensation that you are owed. This is because insurance companies owe a duty to their shareholders to pay out Claimant’s like you the smallest amount of compensation.
It is the insurers that are stating we are in the midst of a fraud pandemic which has instigated this move. With the Association of British Insurers (ABI) stating that their pay outs have decreased in the past 5 years we are struggling to see where this alleged epidemic lies. This information produced by ABI shows that the amount paid out annually by motor insurers alone fell from £8.3 billion in 2010 to £5.89 billion in 2015. These figures are available on the ABI website and are not something that has ever been highlighted by the media or the government!!! These figures contradict recent contentions by the insurance industry who are backing the government’s plans to attack a victim of negligence’s access to representation and proper compensation for people injured as a result.
Insures are stating that their profits are increasing, some insurers share prices hitting record highs and dividends being paid to their shareholders. Insurers want to have it both ways; they want us to believe that there is a pandemic but at the same time say that they are doing well. If there is a pandemic then we want the insurers and the government to show us the evidence and the figures.
The proposal to increase the small claims limit was discussed only 2 years ago and the government ruled out increasing the small claims limit as it was suggested there were no adequate safeguards to protect genuine Claimants. We cannot see how this has changed over the last 2 years.
We therefore ask that you consider signing the petition below to help prevent the government’s plan to increase the small claim limit from £1,000 to £5,000. Please help us to help Claimant’s get the compensation they so rightly deserve.