Following the rollout of the whiplash reform programme last year on May 31, the Ministry of Justice (MoJ) has now published part two of the government’s response to the “Reforming the soft tissue injury (‘whiplash’) claims process” consultation which closed in January 2017.
“Due to the need to focus on progressing the primary and secondary legislative reforms, a decision was taken to split the government’s response to [the] consultation into two parts,” noted MoJ. “The response confirming the measures to be taken forward by the government in relation to these proposals was published on February 23, 2017, in part one of the consultation response.”
While part one focussed on the legislative proposals, part two examined several other issues also affecting the personal injury sector. Areas covered included the provision of temporary replacement vehicles on credit hire terms; the provision of rehabilitation treatment for injured claimants; and how government reform could help control the costs of civil litigation.
In the 29-page document released by the ministry yesterday (March 22), it wrote: “This publication summarises the submissions provided to the government in 2016/17. Due to the delay in its publication, specific actions will not be taken forward based on the evidence supplied. Where additional action is to be taken, further announcements will be made in relation to next steps, including as to whether supplementary evidence gathering is required.”
Reacting, Association of Consumer Support Organisations (ACSO) executive director Matthew Maxwell Scott said it’s “anyone’s guess” as to why the response took five years to emerge. His guess? “The serious challenges officials are currently experiencing with the operation of the new claims portal may go some way to explaining the delay,” he offered.
Maxwell Scott – who believes the decision not to make further changes will mean a sigh of relief for the sector – stated: “Rightly, ministers are now looking to the wider industry to keep its own respective houses in order, and we look forward to further work with colleagues on issues such as rehabilitation, alternative dispute resolution, and credit hire.
“There is, nevertheless, still a need for action through greater self-regulation and cross-industry engagement as there are numerous areas of unnecessary friction, uncertainty, and poor engagement, which creates adverse outcomes for consumers and those who operate in those markets.”
“For now, however,” he added, “a threat of further government intervention has been lifted, and we must hope the market can focus on what matters most, which is the consumers who depend on being able to access an effective civil justice system.”
Also pleased is Credit Hire Organisation (The CHO) interim chief executive Peter Gomes, who reacted by calling the development “very welcome news” for The CHO members.
“Credit hire companies,” commented Gomes, “are facing significant challenges as a result of the pandemic, Brexit, and associated supply chain issues, and further market intervention from the government at this time would have been a serious concern, especially while the claims industry continues to grapple with the most recent set of reforms (on whiplash) and has further changes to absorb with regard to reform to the fixed recoverable costs regime.
“We are pleased that ministers have listened to us and decided against further action. It will enable our members to focus on bedding in the current reforms, and making sure they can devote their energy to providing their customers with mobility as the UK economy emerges from the pandemic.”
The trade body “will of course continue to engage positively with MoJ and other industry stakeholders,” he said, with the goal of ensuring that the market continues to operate in the best interests of customers in need of help from The CHO members following a non-fault accident.
Cogent Hire managing director Kirsty McKno expressed similar sentiments.
She declared: “I welcome the government’s decision not to take any further action on credit hire during a time of significant challenge for the whole of the motor claims industry.
“Motor claims is battling a perfect storm, induced by macroeconomic events following on from the pandemic including significant repairer capacity issues, vehicle supply shortages, fuel and energy price hikes, insufficient semiconductor chips for vehicle production, and shortage of skilled resource at the same time that we face the separate issues caused by the increasing numbers of EV (electric vehicles).”
“Looking ahead,” McKno went on to say, “and in light of the government’s decision not to take further action on credit hire, I am convinced that cross-industry engagement is the way forward, especially in coming up with solutions to the unprecedented market conditions which threaten the sustainability of our industry.”
In McKno’s view, self-regulation through cooperation creates “far better outcomes” for stakeholders. “Now, we need to work together across the motor claims sector, from insurers to the whole of the supply chain, to make sure that government confidence in our ability to manage our own affairs is not undermined,” she said.
