Our Research Into The Whiplash Reforms

The government’s Whiplash Reform Programme was introduced in 2021 with the aim of speeding up the small claims process and reducing costs.

We conducted an investigation to see if the programme was on track with its aims and intentions. LegalExpert.co.uk however found that, since its launch, there has been a host of issues with the online claims portal including delays in settlements and a backlog of unresolved claims.

Below are the results of our research.

Is the Whiplash Reform Programme in need of urgent reform?

There are huge delays and a backlog of more than 400,000 unresolved claims since the introduction of the Whiplash Reform Programme 2021, an investigation by legexpert.co.uk has found.

System pitfalls are resulting in fewer claims being processed and insurance premiums are skyrocketing despite promises they would be reduced following the reform programme.

An online personal injury claims portal was introduced by the Ministry of Justice in 2021 as part of the Whiplash Reform Programme in which small claims could be processed online without the need to go to court or for legal representation. 

It touted faster claim processing times as well as a promise to clamp down on fraudulent whiplash claims.

What’s more, insurance companies stood to save a lot of money from these reforms but the government vowed that these savings would be passed on to drivers through lower premiums. 

Prior to the reforms, the insurance industry claimed that lower-value personal injury claims were responsible for rising motor premiums. 

But our investigation has found that not only have insurance premiums continued to rise, the majority of small claims still need to be processed.

We found that a total of 702,904 claims have been made since the portal launched. Only 130,593 claims were for whiplash only. 

The latest figures up to December 31st, 2023 show that 406,169 personal injury claims are currently ongoing.

A mere 190,686 have been ‘settled and closed’, meaning that the process is complete. 

A total of 103,867 claims have been rejected or ‘exited the process.’ The majority of which (964) exited with the reason as ‘rejected liability,’ meaning the compensator did not accept liability and the claimant therefore ended their claim.

46,652 claims were ‘removed’, meaning they were deemed unsuitable for the process for one of a number of reasons.

Delays prompted an inquiry from the House of Commons Justice Committee in which committee chair, Sir Bob Neill, said the portal was not meeting the government’s aim to simplify and speed up the claims process. 

The committee also mentioned that the government estimated its whiplash reform programme would save more than £1.2bn from the cost of providing motor insurance, with that saving passed on to motorists. 

But such savings are not to be seen. 

So who is responsible for invoking change?

We found that the new claims portal is operated by the Motor Insurance Bureau (MIB) under the regulation of the Ministry of Justice. However, the portal itself has been set up by a private company, Official Injury Claim Limited (OICL) which then contracts the work to the MIB. The MIB is funded by insurance premiums, which raises concerns over a potential conflict of interest between the processing of claims and those responsible for paying out compensation.

The firm stipulates that it is a not-for-profit organisation. However, the very fact that the firm is private means that there is technically no legal obligation to be held accountable for any delays or backlogs. 

That being said, of course, regulations will be upheld by the MIB – but there appears to be a clear lack of urgency. The Motor Insurance Bureau has been contacted for comment. We are awaiting a response. 

Specialist legal advice and support to anyone who has experienced whiplash or other injuries in a car accident can be found on our website.