After a report was finished by the Transport Select Committee that detailed the costs associated with motor insurance the UK, the government reaffirmed its commitment to making sure that the reforms included in the Legal Aid Sentencing and Punishment of Offenders Bill by Lord Justice Jackson are implemented.
Written within the bill is a section that bans all referral fees that are collected in personal injury cases. Jackson used the bill to detail the many different reasons that insurance companies have been forced to increase their premiums over the last few years. The amount that can be given to by the courts in the case of a road traffic accident personal injury claim has been increased up to £25,000 from the current £10,000, but the fixed fees that lawyers receive in these cases will be reduced after a careful review.
The government also pledged to take a better look at how to prevent uninsured drivers from getting on the roads and how to prevent insurance fraud from continuing to increase high insurance premiums by working alongside the insurance agencies. The government also reinforced the fact that all organisations that utilise personal data must continue to comply with the 1998 Data Protection Act.
Responses to the committee’s recommendations include a commission that will take a look at referral fees attached to RTA protocol, an assessment of risks reviewed with the stakeholders over fixed costs, and another review of the penalty levels that are assigned to common motoring offences such as failure to wear a seat belt, mobile phone use, and speeding.