Carol Hopwood looks at personal injury rules

Oct 9 2007 by Aaron Boland, Liverpool Daily Post

SOLICITORS acting for accident victims were delighted to hear the personal injuries small claims limit was to remain at £1,000, after heavy lobbying from insurance companies that it should be increased to £5,000.

The significance of the small claims limit is far reaching for the consumer. If personal injuries are sustained that last, say two to four weeks, the likelihood is the level of compensation awarded for that injury would be less than £1,000.

Further, and importantly for the consumer, there would be no requirement for the defendant to pay your legal costs. If you had instructed a solicitor to act for you, you would have to pay their fees out of your compensation, the end result being very little left over for the injured party.

If the limit is raised to £5,000, then the problem becomes even more far reaching. Clients with more serious injuries requiring months off work or needing care, would have found themselves fighting the insurers effectively on their own.

It was argued this would be too daunting for the majority of people.

Complicated issues of liability, causation, and the value of the claim would have to be dealt with by the consumer at the same time as trying to recover from their injury and deal with practical and financial worries

Leaving the limit at £1,000 ensures access to justice for the consumer is not eroded and consumers can be properly advised.

CAROL HOPWOOD is a partner and head of personal injury at Goodmans.