Many of the rules associated with Personal Injury Law are complex and restrictive, and over time the Government has sought to improve their efficiency and accessibility to claimants. In this article we will review many of the changes and proposed changes to these rules.

Personal injury law is a branch of civil law that deals with cases where someone suffers harm due to the negligence or wrongdoing of another person or entity. Personal injury law covers a wide range of situations, such as car accidents, slip and falls, medical malpractice, defective products, workplace injuries, and more.

If you have been injured in an accident that was not your fault, you may be entitled to compensation for your medical expenses, lost income, pain and suffering, and other damages. However, the process of pursuing a personal injury claim can be complex and challenging, especially if you are not familiar with the legal system and the applicable laws.

That is why it is important to be aware of the changes to personal injury law that will become prevalent in 2023 and some of those that were introduced in 2022. These changes are designed to benefit both personal injury law firms and their clients by simplifying the procedures, reducing the costs, and increasing the efficiency of personal injury litigation.

Here are some of the main changes that you need to know about.

The increase of the small claims limit for personal injury claims.

The small claims limit is the maximum amount of compensation that can be claimed through the small claims court, which is a simpler and cheaper way of resolving disputes.
Currently, the small claims limit for personal injury claims is £1,000 for general damages (such as pain and suffering) and £10,000 for special damages (such as medical expenses or lost income).

From January 2023, the small claims limit will be increased to £5,000 for general damages and £20,000 for special damages. This means that more personal injury claims will be eligible for the small claims court, which will save both claimants and defendants from paying legal fees and court costs.

For example, if you slip and fall on a wet floor at a supermarket that causes you a broken arm and a sprained ankle, you can claim up to £5,000 for your pain and suffering and up to £20,000 for your medical bills and lost wages through the small claims court.

The new tariff system for whiplash injuries - a reminder.

Whiplash injuries are one of the most common types of personal injury claims, resulting from sudden acceleration or deceleration of the head and neck in a car accident. However, whiplash injuries are also one of the most difficult to diagnose and prove, as they often do not show up on medical scans or tests. This has led to some fraudulent or exaggerated claims that have increased the cost of insurance premiums for everyone.

To address this issue, the government introduced a new tariff system in 2021 that set fixed amounts of compensation for whiplash injuries based on their severity and duration. The tariff system ranges from £240 for an injury lasting up to three months to £4,215 for an injury lasting up to 24 months. The tariff system applies to all whiplash injuries caused by road traffic accidents, regardless of whether they are claimed through the online portal or the small claims court.

For example, if you suffer a mild whiplash injury that lasts for six weeks after being rear-ended by another car at low speed, you can expect to receive £450 in compensation under the new tariff system.

Changes to Qualified One-Way Cost Shifting (QOCS).

Changes to qualified one-way cost shifting (QOCS) are expected came into force in April 2023, as part of the Civil Liability Act 2018. These changes will affect how personal injury claims are handled and funded, and will have significant implications for both claimants and defendants.

QOCS is a system that protects claimants from paying the defendant's costs if they lose their case, as long as they have not acted fraudulently or unreasonably. QOCS was introduced in 2013, following the Jackson reforms, to encourage access to justice and reduce the use of conditional fee agreements (CFAs) and after-the-event (ATE) insurance.

The main changes to QOCS that are proposed are:

• Extending QOCS protection to claimants who have entered into a damages-based agreement (DBA) with their solicitor, where the solicitor's fee is a percentage of the damages awarded.
• Introducing a fixed recoverable costs regime for personal injury claims valued between £1,000 and £25,000, which will limit the amount of costs that can be claimed by either party.
• Applying QOCS to all personal injury claims, regardless of the type of claim or the court in which it is brought.
• Removing the exception for claims involving allegations of fundamental dishonesty, which currently allows defendants to recover their costs from claimants who have been found to be fundamentally dishonest.
• Replacing the current test of "unreasonable behaviour" with a test of "conduct that obstructs the just disposal of proceedings", which will make it harder for defendants to recover their costs from claimants who have acted unreasonably.

These changes are intended to reduce the costs and complexity of personal injury litigation, and to discourage fraudulent and exaggerated claims. However, they also raise some concerns for both claimants and defendants, such as:

• How will DBAs affect the relationship between claimants and their solicitors, and will they create a conflict of interest?
• How will fixed recoverable costs affect the quality and availability of legal representation for claimants, especially those with complex or low-value claims?
• How will QOCS apply to mixed claims, where some elements are personal injury and some are not?
• How will removing the exception for fundamental dishonesty affect the incentive for claimants to be honest and co-operate with defendants?
• How will replacing the test of unreasonable behaviour affect the balance of risk and reward for both parties, and will it create more uncertainty and disputes?

These are some of the questions that need to be answered before the changes to QOCS are implemented. It is important for both claimants and defendants to be aware of these changes and how they will affect their rights and obligations in personal injury claims. If you have any questions or concerns about QOCS or any other aspect of personal injury litigation, please contact our expert team today.

Rules currently under consideration by the government.

The following are a range of personal injury law rules currently under consideration for change by the Government and Civil Justice Council, as many are complex and restrictive. The aim is to make them more efficient and accessible to claimants.

Changes to the limitation period for personal injury claims in England and Wales.

• The Limitation Period for Personal Injury Claims in England and Wales
• The limitation period for personal injury claims in England and Wales is currently three years from the date of the accident. This means that you must start your claim within three years of the date of the accident, or you will lose your right to claim.
• The Civil Justice Council is currently reviewing proposals to extend the limitation period to five years. This would mean that people would have an extra two years to start their claims, which would give them more time to gather evidence and make a decision about whether to pursue a claim.

The proposals are still under review, and it is not yet clear whether they will be adopted. However, if they are, it would be a significant change to the law on personal injury claims.

Here are some of the reasons why the Civil Justice Council is considering extending the limitation period:

• The three-year limitation period is often too short for people to start their claims. This is especially true for people who have suffered serious injuries, as they may need more time to recover and gather evidence.
• Extending the limitation period would give people more time to make a decision about whether to pursue a claim. This would be particularly helpful for people who are unsure about their legal rights or who are worried about the cost of a claim.
• Extending the limitation period would help to ensure that people who have been injured are able to get the compensation they deserve. This is because it would give them more time to gather evidence and make a strong case for their claim.

Changes to the discount rate.

The discount rate is a percentage used to calculate the present value of future losses in personal injury claims. This means that it is used to estimate how much money is worth today in comparison to what it will be worth in the future. The current discount rate in England and Wales is 2.5%. However, the government is considering proposals to increase the discount rate to 3.5%.

If the discount rate were to be increased to 3.5%, it would mean that claimants would receive less compensation for their future losses. This is because the present value of their future losses would be lower.

For example, if a claimant is awarded £10,000 for future losses at a discount rate of 2.5%, they would receive £8,703.70 today. However, if the discount rate were to be increased to 3.5%, they would only receive £8,196.30 today.

The government is considering increasing the discount rate in order to reflect the fact that interest rates have been rising in recent years. However, this would have a significant impact on claimants, who would receive less compensation for their future losses.

Changes to the rules on pre-action disclosure.

Pre-action disclosure is a process that allows claimants to request that defendants disclose documents that are relevant to their claim before they issue a claim. This can help claimants to gather evidence and make a stronger case for their claim.

The current rules on pre-action disclosure are complex and time-consuming. This is because they require defendants to disclose a wide range of documents, including documents that are not necessarily relevant to the claim. This can be a burden on defendants, and it can also delay the resolution of claims.

The government is considering proposals to simplify the rules on pre-action disclosure. This would make it easier for claimants to obtain the documents they need, and it would also reduce the burden on defendants.

Here are some of the reasons why the government is considering simplifying the rules on pre-action disclosure:

• The current rules are complex and time-consuming. This can be a burden on defendants, and it can also delay the resolution of claims.
• The current rules do not always allow claimants to obtain the documents they need. This can make it difficult for claimants to gather evidence and make a strong case for their claim.
• The current rules are not always enforced. This can lead to defendants withholding documents that are relevant to the claim.

If the rules on pre-action disclosure are simplified, it would make it easier for claimants to obtain the documents they need, and it would also reduce the burden on defendants. This would help to speed up the resolution of claims and ensure that claimants receive the compensation they deserve.

Changes to the rules on third-party funding.

Third-party funding is where a third party, such as a law firm or investment company, provides funding to a claimant to bring a personal injury claim. This can be helpful for claimants who do not have the financial resources to bring a claim on their own.

The current rules on third-party funding in England and Wales are complex and restrictive. This is because the government is concerned about the potential for abuse of the system.

For example, there is a risk that third-party funders could pressure claimants to settle their claims for less than they are worth.

However, the government is considering proposals to relax the rules on third-party funding. This would make it easier for claimants to access funding, which would help to ensure that they are able to bring claims and receive the compensation they deserve.

Here are some of the reasons why the government is considering relaxing the rules on third-party funding:

1. The current rules make it difficult for claimants to access funding. This can prevent claimants from bringing claims and receiving the compensation they deserve.
2. The current rules are complex and restrictive. This can make it difficult for claimants to understand their rights and options.
3. The current rules are not always enforced. This can lead to third-party funders abusing the system.

If the rules on third-party funding are relaxed, it would make it easier for claimants to access funding. This would help to ensure that claimants are able to bring claims and receive the compensation they deserve.

However, it is important to note that there are still some risks associated with third-party funding. For example, claimants may have to pay a share of the proceeds of their claim to the third-party funder.

If you are considering third-party funding, it is important to speak to a lawyer to understand your rights and options.

Changes to the definition of "serious injury”.

The definition of "serious injury" is used to determine whether a claimant is eligible for special damages, such as loss of earnings and care costs. The current definition is complex and difficult to apply. This can make it difficult for claimants to qualify for special damages, even if they have suffered significant injuries.

The government is considering proposals to simplify the definition of "serious injury". This would make it easier for claimants to qualify for special damages, and it would also help to ensure that they receive the compensation they deserve.

Here are some of the reasons why the government is considering simplifying the definition of "serious injury":

• The current definition is complex and difficult to apply. This can make it difficult for claimants to qualify for special damages, even if they have suffered significant injuries.
• The current definition is not always consistent. This can lead to different outcomes for claimants with similar injuries.
• The current definition is not always fair. This can mean that some claimants who have suffered significant injuries are not eligible for special damages, while others who have suffered less serious injuries are eligible.

If the definition of "serious injury" is simplified, it would make it easier for claimants to qualify for special damages. This would help to ensure that claimants receive the compensation they deserve, regardless of the severity of their injuries.

However, it is important to note that there are still some risks associated with simplifying the definition of "serious injury". For example, it could lead to more claimants being eligible for special damages, which could increase the cost of personal injury claims.

Changes to the rules on conditional fee agreements (CFAs).

A conditional fee agreement (CFA) is an agreement between a lawyer and a client where the lawyer agrees to work on a case for a success fee, which is only payable if the case is successful. This means that the client does not have to pay any legal fees if the case is unsuccessful.

CFAs are a popular option for personal injury claimants because they offer the opportunity to recover compensation without having to pay any upfront legal fees. However, the current rules on CFAs in England and Wales are complex and restrictive.

The government is considering proposals to simplify the rules on CFAs. This would make them more accessible to claimants and would also help to reduce the cost of legal fees.

Here are some of the reasons why the government is considering simplifying the rules on CFAs:

• The current rules are complex and restrictive. This can make it difficult for claimants to understand their rights and options.
• The current rules are not always enforced. This can lead to lawyers abusing the system.
• The current rules do not always allow claimants to recover their legal fees. This can make it difficult for claimants to afford to bring claims.

If the rules on CFAs are simplified, it would make them more accessible to claimants and would also help to reduce the cost of legal fees. This would help to ensure that claimants are able to bring claims and receive the compensation they deserve.

Changes to the rules on ATE insurance.

After the Event (ATE) insurance is a type of insurance that covers the cost of legal fees if a claimant is unsuccessful in their case. This means that the claimant does not have to pay any legal fees if they lose their case.

ATE insurance is a popular option for personal injury claimants because it offers the opportunity to pursue a claim without having to worry about the cost of legal fees if they are unsuccessful. However, the current rules on ATE insurance in England and Wales are complex and restrictive.

The government is considering proposals to simplify the rules on ATE insurance. This would make it more accessible to claimants and would also help to reduce the cost of legal fees.

Here are some of the reasons why the government is considering simplifying the rules on ATE insurance:

• The current rules are complex and restrictive. This can make it difficult for claimants to understand their rights and options.
• The current rules are not always enforced. This can lead to insurers abusing the system.
• The current rules do not always allow claimants to recover their legal fees. This can make it difficult for claimants to afford to bring claims.

If the rules on ATE insurance are simplified, it would make it more accessible to claimants and would also help to reduce the cost of legal fees. This would help to ensure that claimants are able to bring claims and receive the compensation they deserve.

Changes to the limitation period for personal injury claims.

The limitation period is the time limit within which a claimant must bring a personal injury claim. The current limitation period in England and Wales is three years. This means that claimants must bring their claim within three years of the date of the accident or the date on which they became aware of their injuries. The government is considering proposals to extend the limitation period to five years. This would give claimants more time to bring a claim, but it would also increase the risk of claimants forgetting about their injuries and missing the deadline.

Here are some of the arguments for and against extending the limitation period:

Arguments for extending the limitation period:

• It would give claimants more time to gather evidence and prepare their case.
• It would allow claimants who have suffered long-term injuries to have more time to assess their losses.
• It would reduce the risk of claimants being forced to settle for a lower amount of compensation because they are running out of time.

Arguments against extending the limitation period:

• It would increase the risk of claimants forgetting about their injuries and missing the deadline.
• It would make it more difficult for defendants to defend themselves against claims.
• It would increase the cost of personal injury claims.

Ultimately, the decision of whether or not to extend the limitation period is a complex one. There are both pros and cons to consider, and the government will need to weigh these carefully before making a decision.

Changes to the rules on apportionment.

Apportionment is the process of dividing the blame for an accident between the claimant and the defendant. This is done to determine how much compensation each party should receive.The current rules on apportionment in England and Wales are complex and difficult to apply. This is because they take into account a number of factors, including the blameworthiness of each party, the relative importance of each party's actions in causing the accident, and the policy of the law.

The government is considering proposals to simplify the rules on apportionment. This would make it easier for claimants to understand their rights and options, and it would also help to ensure that they receive the compensation they deserve.

Here are some of the reasons why the government is considering simplifying the rules on apportionment:

• The current rules are complex and difficult to apply. This can make it difficult for claimants to understand their rights and options.
• The current rules are not always fair. This can mean that some claimants who have been injured through no fault of their own receive less compensation than they deserve.
• The current rules are not always consistent. This can lead to different outcomes for claimants with similar accidents.

If the rules on apportionment are simplified, it would make it easier for claimants to understand their rights and options, and it would also help to ensure that they receive the compensation they deserve.

Changes to the rules on costs.

The rules on costs determine who is responsible for paying the legal fees in a personal injury case. The current rules on costs are complex and can be unfair to claimants. Under the current rules, the loser of a personal injury case is generally responsible for paying the legal fees of the winner. However, there are a number of exceptions to this rule, which can make it difficult for claimants to recover their legal fees.

For example, if a claimant loses their case because they failed to comply with a procedural rule, they may be ordered to pay the defendant's legal fees even if they were not at fault for the accident.

The government is considering proposals to simplify the rules on costs and make them fairer to claimants. This would help to ensure that claimants are able to recover the legal fees they have incurred, even if they lose their case.

Here are some of the reasons why the government is considering simplifying the rules on costs:

• The current rules are complex and difficult to understand. This can make it difficult for claimants to know whether they will be able to recover their legal fees.
• The current rules are not always fair. This can mean that some claimants who have been injured through no fault of their own are unable to recover their legal fees.
• The current rules can discourage claimants from bringing claims. This is because claimants may be worried that they will not be able to recover their legal fees if they lose their case.

If the rules on costs are simplified, it would help to ensure that claimants are able to recover the legal fees they have incurred, even if they lose their case. This would help to encourage claimants to bring claims and receive the compensation they deserve.

In summary

The personal injury law landscape is changing rapidly, and these changes are expected to benefit both personal injury law firms and their clients. However, it is important to be aware of these changes and to adjust your expectations and strategies accordingly.

If you have been injured in an accident that was not your fault, it is important to consult with a qualified and experienced personal injury lawyer who can advise you on your rights and options under the new laws. A personal injury lawyer can help you navigate the new online portal or the small claims court, negotiate with the other party or their insurer, gather evidence and witnesses to support your claim, and represent you in court if necessary.

Here are some additional tips for claimants who are considering bringing a personal injury claim in 2023:

• Start your claim as soon as possible. The limitation period for personal injury claims in England and Wales is three years, so you need to start your claim before the deadline expires.
• Gather evidence to support your claim. This includes medical records, photographs, and witness statements.
• Be proactive in managing your claim. This includes keeping in touch with your lawyer and responding to requests for information.
• Be realistic about your expectations. The amount of compensation you receive will depend on the severity of your injuries and the circumstances of your case.

We hope this blog post has been helpful. If you have any questions about personal injury law or your rights, please do not hesitate to contact CCH Solicitors’ Personal Injury team.

This article is for information only and the information contained within is likely to change. It should not be considered as legal advice, speak to our personal injury law team for the latest information.