As anyone who’s ever been knocked off their bike can attest, it’s not just a deeply unpleasant experience – it can be an expensive one, too. Troubling news then that UK chancellor George Osborne has proposed significant changes to the personal injury claims process, widely expected to make it harder for cyclists to win compensation after an accident.
Easily lost amid all the excited talk that Osborne has done a U-turn on cutting tax credits and plans to borrow £8bn less than forecast, this year’s autumn budget also included some significant proposals that will apparently cut costs for motor insurance providers – but are already worrying the legal industry.
Compensation culture clash
“The Government believes that going green should not cost the earth and we’re cutting other bills too,” Osborne told the House of Commons. “We’re going to bring forward reforms to the compensation culture around minor motor accident injuries.
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“This will remove over £1bn from the cost of providing motor insurance. We expect the industry to pass on this saving, so motorists see an average saving of £40-50 per year off their insurance bills.”
What does this mean in practice? Well in the UK right now, if you’re involved in a “minor” motor accident – whether as a driver, cyclist or pedestrian – you can engage a solicitor to recover damages on a ‘no win, no fee’ basis. For cyclists, this can include general damages for soft tissue injuries, repairs for your bike and replacements for your wrecked clothing.
If Osborne’s proposals are approved in the New Year, these claims will instead have to be made through the small claims court, which would have its limit for personal injury claims increased from £1,000 to £5,000. The problem for cyclists is that they wouldn’t be able to engage solicitors on a ‘no-win, no-fee’ basis in this situation, and would instead be arguing their own case – relying on their own recollection of events. If court proceedings are issued then only court fees are recovered by legal counsel.
Legal profession concerned
Future steps
You can read more at BikeRadar.com
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