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Small Claims

Question for Ministry of Justice

UIN 51719, tabled on 1 June 2020

To ask the Secretary of State for Justice, what steps he is taking to ensure that the new small claims portal will not create an incentive for insurers to deny a claims liability as a result of the Government's decision not to establish an alternative dispute resolution mechanism.

Answered on

9 June 2020

The government announced on 21 April 2020 that all work related to the implementation of the whiplash reforms has been paused and the implementation timetable has been moved to April 2021 because of the impact of the Covid-19 pandemic.

Generally, the online whiplash claims service is being designed to be simple and easy to operate for all users. Once we resume work on the whiplash reform programme, the government will continue its work with the Civil Procedure Rule Committee on new and revised Rules, Pre-action Protocol and Practice Direction to underpin the reforms and the system. This will include consideration of incentives and controls for all users of the online claims service where it is appropriate to do so.

Currently, motor insurers accept liability for damages in the majority of whiplash claims and we do not expect insurer behaviour to change after implementation. However, claimants will have the option to go to court to establish liability where this is necessary.