Changes to Liability Bill

The Civil Liability Bill will change the way personal injury discount rates are calculated.

Britain’s ‘compensation culture’ is in the firing line today as the Ministry of Justice announces a crackdown on whiplash claims through a new Bill.

The introduction of the Civil Liability Bill will change the way personal injury discount rates are calculated in a bid to bring certainty and transparency to the system – meaning savings for the NHS.

It will set fixed amounts of compensation for whiplash claims and ban the practice of seeking or offering to settle the cases without medical evidence.

Justice Secretary David Gauke said ‘The number of whiplash claims has been too high for too long and is symptomatic of a wider compensation culture. We are putting this right through this important legislation, ensuring whiplash claims are no longer an easy payday and that money can be put back in the pockets of millions of law-abiding motorists.’

Personal injury claims because of a road traffic accident are 50% higher than 10 years ago, despite the fall in the number of reported accidents.

The changes will provide a more balanced approach to compensation that fully compensates victims of catastrophic accidents, including the most vulnerable, while addressing issues around overpayment which could have a knock-on effect on public services with large personal injury liabilities – particularly the NHS.