A Customer’s Guide to Whiplash Claims and Your Motor Insurance
The way minor personal injury claims are handled after a road traffic accident in the UK changed significantly in 2021. The government introduced reforms as part of the Civil Liability Act 2018, designed to create a fairer system and reduce the number of exaggerated “whiplash” claims.
These changes affect how you would claim for a minor injury and highlight the importance of having the right protection in place. This guide explains the system as it works today.
The Official Injury Claim (OIC) Portal
Most low-value injury claims for occupants of a vehicle are now processed through a government system called the Official Injury Claim (OIC) portal.
This was introduced because the small claims track limit for road traffic accident injuries was raised from £1,000 to £5,000. Under this system, the legal costs for a successful claimant are generally not recoverable from the at-fault party. The OIC portal is designed to be a direct way for individuals to manage these smaller claims.
What Do These Changes Mean for You?
- Fixed Compensation Tariff: For whiplash-type injuries lasting less than two years, there is now a fixed tariff that determines the amount of compensation you can receive. This has removed the large, variable payouts of the past for minor injuries.
- A 30-Day Time Limit: Insurers now have just 30 days from the claim submission date to admit or deny liability.
Who is Affected by These Reforms?
It is important to note that these specific reforms do not apply to everyone.
- Affected: The OIC portal and fixed tariff system apply to drivers and passengers of motor vehicles.
- Not Affected: Vulnerable road users, a group that includes pedestrians, cyclists, motorcyclists, and horse riders, are exempt from this process for whiplash claims.
The Importance of Legal Expenses Protection
Given there is now a simple online portal, you might ask why you would still need legal cover. The answer lies in the change to the small claims limit.
Because legal costs for claims under £5,000 are no longer recoverable from the at-fault insurer, if you wanted professional help to guide your claim through the OIC portal, you would have to pay for a solicitor yourself.
This is where Legal Expenses Protection becomes invaluable. This additional cover is designed to protect you from these costs if you have an accident that wasn’t your fault. It provides you with access to a legal professional who can:
- Administer and process the claim on your behalf.
- Help you recover uninsured financial losses, such as loss of earnings, damage to personal property, and your policy excess.
- Provide cover for legal costs up to £100,000 under the terms of the policy.
Without it, you would have to navigate the claims process alone or face potentially significant legal fees.
If you do not currently have legal expenses protection and would like the peace of mind it provides, you can add it to your policy by calling 01803 659112 or emailing admin@rivierainsurance.co.uk.
