PI Reforms Announced - Small Claims Limit to be increased
The Ministry of Justice has published part one of its response to the 'Reforming the soft tissue injury ('whiplash') claims process' consultation.
Small Claims Track
The small claims track will be increased from £1,000 to £5,000 for minor RTA soft tissue related personal injury claims and from £1,000 to £2,000 for other personal injury claims in line with inflation.
The Government has decided not to remove payment of PSLA for minor RTA related soft tissue injury claims nor to have a single payment for minor claims. Instead, the Government intends to pursue a tariff of fixed compensation for all claims with an injury duration of between 0 and 24 months.
Discount rate changed to MINUS 0.75%
In a surprise step, the Government has today announced changes to personal injury compensation payments. The Discount Rate will be lowered from 2.5% downwards to -0.75%. Previously, the Discount Rate had remain unchanged since 2001.
Lord Chancellor and Justice Secretary Elizabeth Truss said: "The law is absolutely clear - as Lord Chancellor, I must make sure the right rate is set to compensate claimants. "I am clear that this is the only legally acceptable rate I can set."