Personal Injury Reforms

Personal Injury Reforms

A GUIDE TO THE PERSONAL INJURY REFORMS
AND MOTOR LEGAL EXPENSES INSURANCE

WHAT IS CHANGING?

The government is taking steps to make road traffic related personal injury claims ‘less attractive’ to reduce what is believed to be a high rate of fraudulent and exaggerated claims which contributes to increasing insurance premiums.

In summary the changes are:

1. A much reduced level of compensation for soft tissue (whiplash) injury claims that last for up to two years.
2. Increasing the small claims limit for road traffic accident personal injury claims from the current level of £1,000 up to £5,000.
3. A new online system from the government where PI claims under £5,000 can be logged for the insurer to settle
4. A medical report must be obtained before a claim can be progressed

WHAT IS THE IMPACT OF THE SMALL CLAIMS CHANGE?

Raising the small claims limit from the current level of £1,000 to £5,000 will move most (around 95%) personal injury claims from the Fast Track into the Small Claims Track.

Solicitors’ fees cannot be recovered in the Small Claims Track, so Solicitors will not handle these claims ‘no win, no fee’ as they currently do. If you want to make a claim for a personal injury within the small claims track you can represent yourself as a Litigant in Person (LiP) through the new online system or pay for legal representation which could be cost prohibitive. Alternatively if you have a Motor Legal Expenses Insurance policy that includes small claims costs this can be utilised to gain help with making a claim.

HOW WILL PERSONAL INJURY COMPENSATION PAYMENTS BE AFFECTED?

A claim will not be settled without a medical report and the amount of money paid out will be much less – between £235 and £3910 depending on the injury duration (up to 2 years). This table compares the new tariff with the current compensation payment levels.
Injury Duration

Up to 3 month
4 to 6 months
7 to 9 month
10 months to 1 year
13 months to 15 months
15 months to 18 months
18 months to 2 years
Fixed Tariff for Whiplash injuries
Available per Claim Post Reform
£235
£470
£805
£1,250
£1,910
£2,790
£3,910
2015 Average Payment

£1,750
£2,150
£2,600
£3,100
£3,500
£3,950
£4,500
DO THE NEW RULES APPLY TO ALL ROAD USERS?

There is an agreed exemption for vulnerable road users (those without the protection of a vehicle e.g. motorcyclists,
horse riders, pedestrians and cyclists), children and protected parties (someone who lacks capacity to make a
decision for themselves - permanent or temporary). However full information about how this exemption will be
applied is not yet published.

WHEN WILL THE CHANGES COME INTO EFFECT?

The government has been working on these changes for several years however the current implementation date is
expected to be 1 August 2020.
However you should be aware that normally insurance policies are purchased annually so any cover chosen now
will be in place for 12 months and within the likely time frame when the changes will take place.

WHAT WILL HAPPEN TO CLAIMS HIGHER THAN £5,000?

These will still be handled as they are presently. If you opt for a Coplus Motor Legal Expenses Insurance policy
this will pay for legal costs up to the policy limit to pursue a compensation claim utilising the services of one of our
experienced panel solicitors.

DOES MOTOR LEGAL EXPENSES INSURANCE PROVIDE COVER FOR SMALL CLAIMS?

Many policies do not provide any cover for small claims which means in the new legal rules you would have to
manage your own claim or pay for services. Coplus Motor Legal Expenses policies do provide a claims service for
injured customers who wish to make a small claim.

WHAT IF I DON’T HAVE A LEGAL EXPENSES POLICY – CAN YOU STILL HELP?

Having motor legal expenses insurance means that the cost of assistance with a claim is covered should you need it.
However we will offer a fee based service after the new rules come into effect. This means you will be able to pay
for our service to manage your claim even if you don’t have cover.

WHAT OTHER BENEFITS DOES A MOTOR LEGAL EXPENSES INSURANCE
POLICY INCLUDE?

As well as providing expert assistance to make a personal injury claim within the new legal rules Motor
Legal Cover provides:
• Uninsured Loss Recovery – for example of your motor policy excess if you need to claim on your motor
insurance to repair or replace your vehicle. Uninsured Loss Recovery can also help recover any money you
missed because you couldn’t work, or replace items in the vehicle that were damaged in the accident.
• Depending on the type of policy chosen cover also includes:
• Motor Prosecution Defence - pays for someone to represent you, and to defend you against prosecution, if
you’ve been in a road traffic accident or committed an offence.
• 24/7 Legal Helpline

WILL MOTOR LEGAL EXPENSES INSURANCE BE MORE EXPENSIVE?

If you have purchased Motor Legal Expenses Insurance before then you may notice an increase in the cost of
the premium for the legal cover. This is because in the current rules legal solicitors can operate a ‘no win, no
fee’ arrangement. In the new rules this is not possible so this may mean that the policy is a little more expensive.
However this should remain a relatively small price and offer good value for money regarding the protection that
the policy will give, not just for personal injury claims.
  • Motor Legal Expenses

    Covers £100,000 costs for Drivers and Passengers wishing to bring a claim for Uninsured Losses against a third party following a non-fault incident involving a motor vehicle. Covers £500 costs where a claim allocated to the Small Claims Track. Includes provision of an Incident Management service to all claimants. Policy also includes Uninsured Loss Recover and Motor Prosecution defence. Additional Services are Accident Claims Management and Support Section, Pay as you need Breakdown and Recovery Cover Section, Uninsured Loss Recovery incl Hire, Repair and Personal Injury, Total Loss Recovery Section and Glass Repair & Replacement Service.

This is our Basic Cover and 

Costs just £20 per year

and Includes Key Finder

£20

Motor Legal Expenses including Key Finder
  • + Replacement Car

    Did you know that you aren't always entitled to a replacement vehicle. For instance if your car is stolen or written off, then it's more than likely that your Insurer won't provide you with a  courtesy car.  This is where our replacement vehicle helps. For just an extra £5 on our standard Motor Legal Expenses, you get a replacement vehicle for up to 14 days.

You Can Add 

Replacement Vehicle 

for an Extra £5


£25

Replacement Vehicle Cover
  • + Key Cover

    Cover for replacement keys

    when your keys are lost, stolen or damaged by accidental means up to £1500


    Up to three days vehicle hire

    If your vehicle is unusable as a result of lost or stolen keys (up to £40 per day payable)


    Travel costs to get you home

    Onward transport costs if you become stranded because of lost or stolen keys. 


    Keys locked in your vehicle

    We will arrange a suitable contractor and pay up to £50 to get you back in your vehicle.


    Claims Line open 24/7

    UK based claims line open 24 hours a days, 365 days a year with our Key Cover


    No excess to pay

    Cover for the full authorised claim and no excess to pay.

For an Extra £10 

You Can Add Key Cover 

for the Whole Family


£35

Key Cover for the Whole Family
  • What is Insured?

     £100,000 per claim for any legal action, which is not a small claim, for legal costs, adverse costs and

    disbursements: or

     £500 per claim for any legal action which is a small claim, for legal costs, adverse costs and

    disbursements.

  • What is not Insured?

     Any claims brought against you;

     Any claim not notified to us as soon as practicable that adversely affects the likely outcome of the legal action;

     Any claim where the opponent cannot be traced or identified;

     Any claim in excess of the limit of indemnity of £100,000 for legal costs, adverse cost and disbursements for any legal action which is not a small claim for any one claim on this policy;

     Any claim in excess of the limit of indemnity of £500 for legal costs, adverse costs and
    disbursements for any legal action which is a small claim for any one claim on this policy;

     Any claims where the legal action cannot be pursued in a proportionate manner;

     Costs incurred after we have advised that the legal action is best settled by means other than civil proceedings;

     Any disputes or enquires that commenced prior to the inception of this policy;

     Deliberate actions by you or someone associated to you;

     Claims relating to violence or dishonesty on your part;

     Claims involving the use of a mobile phone whilst driving unless a hands free kit was being used.

  • Is There an Excess?

    There is no excess.

  • Who does the policy cover?

     The policyholder;

     Any other person entitled to ride or drive the vehicle covered under the motor insurance policy. 

  • What's actually covered?

    Section 1 – Uninsured Loss Recovery

    An incident which gives rise to a legal action which occurs within the period of insurance and within the territorial limits involving the vehicle and the vehicle of a third party (including collisions) which:

    i) causes damage to your vehicle; and/or

    ii) causes damage to any personal belongings within or on the vehicle; and/or

    iii) causes your death or bodily injury whilst you are travelling in or on the vehicle, or getting into or out of or on or off the vehicle; and/or

    iv) any other uninsured losses (including but not limited to alternative transportation costs, should your vehicle be unusable following an accident

    and loss of earnings as a result of an accident requiring you to take time off work).


  • Do I need it?

    This one is your call. You don't need this policy legally, but if ever you need to involve solicitors to fight your corner, it becomes a costly excercise. So is it worth spending £10 a year? We think it probably is.

  • Policy Wording

    View Policy Wording

  • Key Facts

    View Key Facts

Share by: