Question to the Ministry of Justice:
To ask the Secretary of State for Justice, whether he has estimated the cost to the insurance industry of an increase in claims tried using the small claims track as a result of proposed changes to the small claims limit; and if he will make a statement.
The Government proposal to increase the small claims track limit, for road traffic accident related personal Injury claims to £5,000 and for all other personal injury claims to £2,000, is intended to reduce the costs associated with this type of civil litigation.
The Government published a validated impact assessment for the measure alongside the Civil Liability Bill on 20 March 2018. It contains analysis, data and assumptions including both the estimated costs and savings to all sectors, including the insurance industry, arising from the increases to the small claims track. The Impact Assessment is available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/720954/whiplash-impact-assessment.pdf.