Following the Civil Liability Bill receiving Royal Assent today, Mark Hemsted, a partner with international law firm Clyde & Co, said:
“This is a very welcome Christmas present for both the public and insurers. The reforms, coupled with the anticipated raising of the small claims limit in 2020 to £5.000, are all about reducing the cost of motor insurance for the British public – and it will do that. The question is by how much.
“The proposed raising of the small claims limit means that claimant solicitors will have a much bigger hurdle to leap before they can recover costs. That could either deter claims – or it could lead to a sudden increase in the number of higher value claims as it clearly creates an incentive to go large, so to speak.”
“The Bill requires that regulations are made on various aspects, including the levels of tariff, uplift in exceptional circumstances, medical reporting procedure and FCA regulation and reporting. These statutory instruments will be debated in both houses pursuant to the affirmative resolution procedure. It appears there will still be lots at stake for which insurers will need to argue if the potential benefits for insurers and the public are to be fully realised.”