Injured cyclists seeking compensation shortchanged by George Osborne

In a populist move to reduce insurance premiums for drivers, changes to the personal injury claims process proposed by George Osborne are likely to have a detrimental effect on injured cyclists seeking compensation.

The government plans to remove the right to recover general damages for soft tissue injuries in an attempt to stop spurious claims for whiplash. George Osborne has claimed that the changes will reduce car insurance premiums by £40-£50 pounds, but brokers are sceptical that savings of this amount will be passed on to drivers. Whiplash claims have fallen by more than a third in the last four years and yet still the insurance industry has not reduced premiums. More importantly, no safeguards are yet in place to protect the right to compensation and legal representation when cyclists and pedestrians are hit by cars.

Rather than engage specialist solicitors and claim compensation for their minor injuries, victims of road traffic collisions will be steered towards the small claims court, which, it is proposed, will have its limit for personal injury claims increased from £1,000 to £5,000.

Changes to law for injured cyclists

Does it mean that cyclists with a claim under £5,000 are being encouraged to pursue claims for compensation through the small claims court without legal representation?

It seems likely that many personal injury lawyers will leave the market as the costs they are able to recover will be less than their operating costs. In the small claims track no legal fees are recovered if the case is not issued. If court proceedings are issued then only court fees are recovered. Scrupulous lawyers advise clients who have a small claim that the costs that they would have to pay for representation would be disproportionate to the sum recovered.

Is it less likely that cyclists will receive compensation?

Details of the changes are not yet clarified, but the time and bureaucracy involved in making a small claim with no prospect of cash compensation is likely to put many vulnerable road users off pursuing a claim. There is a move away from cash compensation towards awarding physiotherapy only for soft tissue injuries. 

Why cash compensation is right and proper for victims of road traffic collisions

Fraudulent claims for whiplash has have cost drivers and insurers many millions of pounds, but the elimination of cash compensation for soft tissue injuries will have an unwelcome effect on vulnerable road users, a group already treated like second class citizens by the legal system. In the absence of the presumed liability that protects cyclist or pedestrians struck by a cars in other European countries, British cyclists are forced to argue for compensation – even when injury may have affected their recollection of events. When vulnerable road users are through no fault of their own, it is right and proper that they receive compensation for what is always a traumatic event.

The proposals are subject to consultation in the New Year and changes will not be in place until 2017. As further details of the proposed changes are revealed and the consultation process begins, we will report on developments in detail.

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