Small claims limit may be raised to £2500

More discussion regarding the small claims limit but the decision has been delayed? [12th January 2007]

Source - Law Society Gazette

The debate regarding the personal injury small claims limit continues to rage although the Department of Constitutional affairs has attempted to introduce a compromise.

The DCA has suggested a figure of £2500 be agreed in relation to the official small claims limit the compensation claims involving pain and suffering.  This figure is believed to be far too high by most claimant lawyers and to low to satisfy most defendant insurers.

The Law Society published the details last month of its own research into public attitudes regarding exposure to insurer claims departments are and whether solicitors could be trusted to represent them in relation to personal injury claims.  The resounding response seemed to establish that the public do WinFax trust solicitors, but they have very little regard for insurance companies whose only interest is in saving as much money as possible from whatever claim is intimated.

Whilst this may be a rather biased view to take, you must ask yourself the question - will insurer claims department treat an accident victim fairly?  A claims department has a primary function to save money on claims costs.  Injury claims department staff are well trained and well motivated - they are also very knowledgeable.  Your average accident victim, is definitely not.

If the small claims court limit is raised to 2500 pounds, then this will create a huge tranche of claims involving accident victims who are completely unrepresented.  With such an unbalanced playing field, there is only one winner and that undoubtedly will be the insurer.

More news on this subject will follow