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Whiplash and the Cost of Living

The long-awaited Government proposals on whiplash have now been published. With energy prices and below inflation pay already dominating the political agenda, it appears that whiplash is also now part of the debate with Chris Grayling identifying abuse of the system and its resulting impact on insurance premiums as a cost of living issue.

As set out in the consultation earlier this year, the Government is focusing on fraud and exaggeration to reduce the costs of whiplash claims and bring down premiums. It does not support at this stage an increase in the Small Claims Track limit and rejects the recommendation of the Transport Select Committee to reduce the limitation period for RTA claims, focusing instead on achieving change in two ways: by improving the quality of medical evidence; and by introducing specific measures to challenge fraudulent claims.

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