Motorists are set to benefit from lower insurance premiums after the government announced plans to introduce two key pieces of legislation relating to road traffic accidents.
The Ministry of Justice has this week published a new Civil Liability Bill for England and Wales, which addresses the way in which claims for whiplash injuries are settled, as well as how much insurers have to pay out in personal injury cases.
The bill is intended to make it harder for individuals to make fake or frivolous claims for whiplash injuries that are the result of car accidents.
The government says that new measures, which will set fixed amounts of compensation for whiplash claims and outlaw the practice of settling such claims without formal medical evidence, could save the UK’s drivers as much as £35 a year.
Justice secretary David Gauke said: “The number of whiplash claims has been too high for too long and is symptomatic of a wider compensation culture.
“We are putting this right through this important legislation, ensuring whiplash claims are no longer an easy payday and that money can be put back in the pockets of millions of law-abiding motorists.”