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Plans to change cycling injury compensation claims

Posted in: Bicycle Accidents No Win No Fee Road Traffic Accidents Whiplash Injuries 

As part of his autumn budget this year, Chancellor George Osbourne has announced plans to radically change the rules surrounding compensation claims for cyclists. Currently, cyclists can claim compensation for damage to equipment and injury through the courts using no win, no fee” solicitors. The proposals are expected to save the insurance industry around £1 billion a year, savings that should be passed on to the customers. This should save customers around £40 to £50 per annum. If the proposals go ahead in the new year, insurance brokers ETA Cycle Insurance do not believe that the savings will be guaranteed to be passed on to the customer.

Small Claims Courts instead of no win, no fee solicitors

It is proposed that cyclists will no longer be allowed to engage “no win, no fee” solicitors for accidents, and will instead have to take their case to the Small Claims Court where they will have to defend themselves. Mr Osbourne proposes to increase the Small Claims Court compensation pay-outs from £1000 to £5000, however it is believed that by disallowing solicitors to pursue these cases, spurious whiplash and other injuries will no longer be made in such numbers.

The proposals will be subject to consultation in the new year and any amendments made as agreed.  It is expected that the changes will come into force during 2017 and in the meantime it is “business as usual”.

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