The latest announcement leaves the victims of negligent injury at the mercy or insurers. Previously the government had already brought in measures to take lowered values and straight forward injury claims away from the courts through a portal system.
The issue remains that an injury valued less than £5000 may not involve a simple interpretation of law.
What is the net result of this announcement? Insurance share prices rise. The Chancellor hopes the saving will be passed onto policyholders, but the previous savings provided to insurers did not lead to the same.
The public need to be aware that although they do not need the justice system at the time these changes occur. One day they might, through no fault of their own, need that system. Of course, by then the remedy they need will no longer be available.
The chancellor used his spending review to propose a ban on general damages for ‘minor’ soft-tissue injuries and a rise to £5,000 of the small claims limit for all personal injury claims. The changes would come into effect in 2017. Osborne (pictured) said he expected the resulting £1bn saving for the insurance industry to be passed on to consumers through reduced premiums.The Law Society condemned the proposals, saying it was concerned that they would undermine citizens' rights.