Posted by Andrew Wild, head of legal at Legal Futures Associate First4InjuryClaims
Wild: Call for collaborative working
The gap between the number of road traffic accident (RTA) injuries and the number of motor injury claims continues to widen, according to the latest government data.
Between 2020 and 2023, RTA injuries increased by 15% but claims fell by almost a third (29%), analysis of Department of Transport data by the Association of Personal Injury Lawyers (APIL) shows.
It’s no surprise that claims volumes have plummeted to record lows since the Civil Liability Act reforms, although traffic on the roads has returned to pre-pandemic normal.
What it should be seen as, however, is yet another red flag that ministers responsible for delivering access to justice should finally do something about.
Why are claims volumes so low?
“Historically, the number of road injuries and the number of personal injury claims have followed each other very closely. That is no longer the case,” says APIL’s chief executive, Mike Benner.
“What we have is a cavernous justice gap growing between injuries and claims levels, which means many people who have suffered painful injuries and disruption to their lives are not receiving the compensation they need and deserve.”
So why aren’t people exercising their right to claim? Particularly in a cost-of-living crisis, where we would typically see numbers surge. That’s the $64,000 question.
The suggestion (mainly from architects of the reforms) that motorists are having fewer accidents is not borne out by the government’s own data. Law firms have now had sufficient time to decide whether they’re in or out when it comes to low-value RTA work and it is unrealistic to write off the significant drop off as people not being able to find representation.
The most likely reason why injured parties who could claim are choosing not to is that they either don’t know they can, don’t know how, or don’t believe it will be worth their while.
How many potential claimants are now being told by insurers to either attempt to navigate the Official Injury Claim (OIC) portal on their own or not bother making a claim, rather than driving them into their own alternative business structure or panel law firms as they used to do? Or perhaps insurers are being more selective about who they want to help?
Raising awareness
My colleague Andy Cullwick has previously written about the (perhaps unlikely) possibility of claimant law firms joining forces to inform the public of their rights and routes to redress, but the government – whatever colour party is in power – should also bear some of the responsibility.
The OIC portal, which purported to make it easier for motorists to pursue claims without a lawyer, was introduced without fanfare in 2021. It is still far from perfect, not least the average settlement time for a case which has crept up another 20 days to 324 days, but greater efforts should be made to make people aware of its existence rather than relying on insurers to signpost clients.
With a report by Which? finding that consumer trust in the insurance industry is at an all-time low, there are also renewed calls for an investigation into soaring motor insurance premiums.
Given the significant decline in the number of personal injury claims, the cost of these can no longer be blamed, and motorists are yet to see any of the promised savings passed on.
A taskforce has been announced to examine the issue, but with insurers on the panel it is questionable how independent or transparent any investigation will be.
Working together
It is fair to say that Labour’s early days in power have been far from plain sailing and the motor injury market may not be a priority for the party right now.
I hope, however, that, as a lawyer, the prime minister will recognise the importance of addressing these issues, and the benefits of collaborative working with industry stakeholders, sooner rather than later before access to justice is eroded still further.
A version of this blog first appeared on Insurance Claims
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