Change to personal injury claims could put businesses at risk

30 November 2015

Osborne announced in last week’s Autumn Statement there will be a ban on general minor damages and a limit of £5000 for small claims, coming into force in 2017. 

While this is expected to reduce premiums for customers and eliminate the ‘whiplash claim culture’, businesses specialising in small claims will be at risk of going bust and customers with legitimate minor injuries could miss out on compensation. Many customers will be unable to get legal advice if their claim is anything below £5000.

Jonathan Smithers, president of the Law Society, commented, “The Law Society is gravely concerned that these proposals will completely undermine the right of ordinary citizens to receive full and proper compensation from those that have injured them through negligence.”

He further added, “Personal injury claims, even lower value claims, can include serious injuries arising from the fault of an employer or other road traffic accidents where legal rights can be very complex and the injuries caused debilitating. A new limit of £5,000 will mean personal injuries including facial scarring would be considered as "small claims". This is totally unacceptable.”

If you are concerned these future changes may impact your business and need help to restructure or pay off debt, please call us on 0800 9700539.