22 March 2018
The Civil Liability Bill was introduced into the House of Lords on 21 March 2018. The aim of the Bill is to make changes to the way in which personal injuries claims are assessed in England and Wales. The Bill proposes far-reaching reforms designed to help reduce the volume and cost of lower value whiplash claims, while also introducing measures to modernise the manner in which the discount rate is set.
The measures within the Bill directed at lower value soft tissue injury or ‘whiplash’ claims, form part of the UK Government’s ongoing programme of reforms seeking to remove costs from the civil justice system. The Bill proposes:
- a tariff of compensation for pain, suffering and loss of amenity for whiplash claims as defined in the Bill. The final tariff figures will be set in supporting regulations
- a regulatory ban on seeking or offering to settle whiplash claims without medical evidence; and
- to provide for the Judiciary to increase the compensation payable for pain, suffering and loss of amenity by up to a certain amount in exceptional circumstances. The cap for exceptional payments would be set in supporting regulation.
The Bill also seeks to provide more clarity in relation to the discount rate and ensuring that the applicable rate supports a 100% compensation principle. The Bill proposes:
- to modernise the way the discount rate is set so that it reflects the reality of how claimants actually invest their money;
- to put the process of setting the rate on a clearer statutory footing, with a requirement for the Lord Chancellor to review it at least every 3 years, giving clarity and assurance to claimants and to those who underwrite the costs; and
- to create an independent expert panel to advise the Lord Chancellor in order to help ensure that the rate is set fairly and transparently in future.
The measures proposed in the Civil Liability Bill will affect claims raised in England and Wales only, and there will be no change to the law in Scotland. However, the Scottish Government announced in September 2017 its intention to introduce a Damages Bill during the 2017-2018 Parliamentary session. The proposed Bill would seek to amend the law on the discount rate following a joint consultation with the UK Government. While the Scottish Government has not provided a comment on the Civil Liability Bill, it seems likely that the Scottish Government will seek to mirror the UK Government’s approach to the discount rate. It remains to be seen whether the proposed reforms concerning whiplash claims will also be introduced in Scotland.
The full publication can be read here: Civil Liability Bill
Contact: Catherine Currie, Partner & Solicitor Advocate, ccr@bto.co.uk