Clamping Down On Compensation Culture

The Government, has always expressed its determination to clamp down on the so called “compensation culture.” The latest attempt to do so is The Criminal and Justice Court Act 2015, which has recently received Royal Assent, although it has not as yet been enacted. Section 55 of the Act will contain an obligation on Judges to strike out any personal injury claims where there is a finding of fundamental dishonesty.

When the recent Jackson reforms that were introduced in April 2013, the Government introduced One Way Qualified Cost Shifting. Therefore, from April 2013, if a Claimant loses his personal injury case he does not have to pay the Defendant’s costs. If the case is fundamentally dishonest, then this protection is stripped away. This is another example of the Government trying to discourage fraudulent claims. It is however debatable whether fraudulent claims are as widespread as insurers and legislators believe.

This attempt to tackle dishonest claims can be seen in the introduction of the Criminal Justice Court Act 2015. Section 58 of this Act introduces a ban on certain regulated persons (it is unclear whether this applies to solicitors or not) offering inducements to make personal injury cases.

Another step to catch out bogus Claimants is the introduction from the 1 June 2015, of a system whereby Claimants solicitors must search a database to ensure that any potential Claimant has not made multiple claims, which may be fraudulent. This search generates a unique reference number, which must be entered on the CNF on the portal.

In addition, controls have been introduced to prevent medical experts making up reports that are fraudulent. All Medical Experts in road traffic cases now have to be accredited and instructions have to be sent via MedCo Registration Solutions.

If you would like more information, speak to our Personal Injury Solicitor, Zahreen Hussain on 020 7998 7777 or email her at zahreen.hussain@bloomsbury-law.com.

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Clamping Down On Compensation Culture

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