MoJ will now wait to assess the impact of other motor reforms before coming to a decision
The Motor Accident Solicitors Society (Mass) has welcomed the Ministry of Justice (MoJ) deferring its decision on the small claims limit until after the effects of the recent wave of motor reforms have been assessed.
There had been calls for the small claims limit to be increased to £5,000 to cater more for whiplash claims, but Mass has been concerned this may lead to a restriction on access to justice for legitimate claimants.
The House of Commons Transport Select Committee has previously said that any increase to the small claims limit would have detrimental impacts on access to justice, increase the activities of claims management companies and potentially increase fraudulent and exaggerated claims.
Mass chairman Craig Budsworth said: “Our members will today be breathing a huge sigh of relief. The government has pulled back from the brink of denying thousands of legitimate claimants access to legal advice. If the insurance industry con had succeeded, they would have been able to hoodwink countless individuals in the small claims court.
“All sides must now work together to address the serious problem of fraud and exaggeration in claims, finding workable solutions that are proportionate, balanced between the interests of claimants and defendants, and favourable to all those who pay motor insurance.”