The UK government has published a second part of its consultation on whiplash reforms. In essence, their decision is to er…do nothing. Yep, the DVLA approach.
Here’s some reaction from various stakeholders;
Credit Hire Organisation
Commenting on the credit hire elements of the Government’s response to Part II of the soft tissue injury consultation, Peter Gomes, interim CEO of The CHO, said:
“This is very welcome news for our members. Credit hire companies (CHCs) s are facing significant challenges as a result of the pandemic, Brexit and associated supply chain issues, and further market intervention from the government at this time would have been a serious concern, especially as the while claims industry continues to grapple with the most recent set of reforms (on whiplash) and have further changes to absorb with regard to reform to the fixed recoverable costs regime.
Peter added: “We are pleased that ministers have listened to us and decided against further action. It will enable our members to focus on bedding in the current reforms, and making sure they can devote their energy to providing their customers with mobility as the UK economy emerges from the pandemic
“We will of course continue to engage positively with MoJ and other industry stakeholders to make sure the market continues to operate in the best interests of customers requiring our members’ help after a non-fault accident.”
Association of Consumer Support Organisations (ACSO)
Commenting on the outcome of Part II of the consultation, Matthew Maxwell Scott, executive director of the Association of Consumer Support Organisations, said:
“A sector so used to often damaging upheaval will be giving a sigh of relief that the government has decided against any further changes.
“Quite why this response took five years to emerge is anyone’s guess, though the serious challenges officials are currently experiencing with the operation of the new claims portal may go some way to explaining the delay.
“Rightly, ministers are now looking to the wider industry to keep its own respective houses in order, and we look forward to further work with colleagues on issues such as rehabilitation, alternative dispute resolution and credit hire.
“There is, nevertheless, still a need for action through greater self-regulation and cross-industry engagement as there are numerous areas of unnecessary friction, uncertainty and poor engagement, which creates adverse outcomes for consumers and those who operate in those markets
“For now, however, a threat of further government intervention has been lifted and we must hope the market can focus on what matters most, which is the consumers who depend on being able to access an effective civil justice system.”
Kirsty McKno, managing director, Cogent Hire
Commenting on the decision by ministers not to introduce any further reforms to the credit hire market, following the publication of Part II of the whiplash Consultation today, Kirsty McKno, managing director of Cogent Hire, said:
“I welcome the Government’s decision not to take any further action on credit hire during a time of significant challenge for the whole of the motor claims industry.”
“Motor claims is battling a perfect storm, induced by macro-economic events following on from the pandemic including significant repairer capacity issues, vehicle supply shortages, fuel and energy price hikes, insufficient semi-conductor chips for vehicle production, and shortage of skilled resource at the same time that we face the separate issues caused by the increasing numbers of EV.
During the pandemic I was keen to foster a spirit of collaboration between insurers and credit hire companies to ensure customers were able to access appropriate mobility while their vehicles were off the road.”
“Looking ahead, and in light of the government’s decision not to take further action on credit hire, I am convinced that cross-industry engagement is the way forward, especially in coming up with solutions to the unprecedented market conditions which threaten the sustainability of our industry.”
Self-regulation through co-operation creates far better outcomes for stakeholders; including customers. Now, we need to work together across the motor claims sector, from insurers to the whole of the supply chain, to make sure that government confidence in our ability to manage our own affairs is not undermined.”