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Posted on 16.10.2020

Motor injury claims 'tick up' following release of official claims data, but all injury claims well down on 2019

Motor injury claims registered with the official government body (the Compensation Recovery Unit or CRU) for July- September this year have very slightly increased on the previous quarter, but are still well below the numbers recorded for the same time last year.

Following a Freedom of Information request, the Association of Consumer Support Organisations (ACSO), which represents consumers and those companies who help consumers with civil claims, said nearly 105,000 motor injury claims were registered in Q3 2020, a slight increase of 10,000 on the 95,000 claims registered between April- June 2020.

Motor claims in the equivalent period last year (July - September 2019), were 169,000 meaning there has been a year on year fall of nearly 38 per cent. 

ACSO executive director, Matthew Maxwell Scott, said: "Motor claims have risen slightly since the end of the previous quarter, but are still well down on last year, showing the impact of Covid on claims incidence has been sustained well beyond the full lockdown between March and May.

"The reduction in compensation for injury and vehicle repair costs is good news for insurers and we hope this will be reflected in reduced premiums for Britain's motorists in the year ahead."

Mr Maxwell Scott noted that claims incidence for Employer Liability (EL), Public Liability (PL) and Clinical Negligence (CN) was broadly flat on the previous quarter, but well down compared to the same period last year. "There has been very little increase in EL and PL claims since the lockdown, which may be because people are still working from home.

"It is early days but this could be the start of a very different claims environment for the UK, which is seeing a long-term contraction in injury claims from a peak of 1,048,000 annual claims in 2012/13 to 829,000 claims in 2019/20, a 21 per cent reduction."

Commenting on the government's delated whiplash reform programme, which is now due to come into effect in April 2021, Mr Maxwell Scott said: "It's reasonable to ask whether it is the right time to be delivering radical change when the claims market and general environment is so volatile and the new small claims portal still faces many operational challenges.

"As we've previously stated, we broadly support the concept of the portal in improving efficiencies and streamlining the claims process, as long as we have the right consumer safeguards in place.

"But the new minister will have some rapid decisions to make when they arrive at their desk, because there are still no rules and many fundamental safeguards remain unresolved. Moreover, the current backlog of cases in the civil justice system will only increase with an upsurge in litigants in person through the new regime". 

 

Volume of Personal Injury Claims Recorded by the Compensation Recovery Unit (CRU)
Liability Type  Clinical Negligence  Employer Motor Other  Public Not Known Total
01 Jan 18- 30 Jun 18 8,978 42,151 326,699 5,036 47,950 1,209 432,023
01 Jul 18- 30 Sep 18 4,483 22,375 159,417 1,804 21,290 616 209,985
01 Oct 18 - 31 Dec 18 3,944 23,517 181,261 1,848 23,247 737 234,554
Total 2018  17,405 88,043 667,377 8,688 92,487 2,562 876,562
01 Jan 19- 31 Mar 19 4,207 22,001 156,791 1,868 21,288 597 206,752
01 Apr 19- 30 Jun 19 3,494 25,342 146,844 1,610 16,244 328 193,862
01 Jul 19- 30 Sep 19 3,908 23,491 169,217 1,995 20,101 430 219,142
01 Oct 19 - 31 Dec 19 4,324 16,162 181,131 1,927 19,622 504 223,670
Total 2019 15,933 86,996 653,983 7,400 77,255 1,859 843,426
1 Jan 20 - 31 Mar 20 4,119 14,032 155,860 1,554 16,620 393 192,578
1 Apr 20 - 30 Jun 20 2,217 10,531 94,973 1,076 11,778 351 120,926
1 Jul 20 - 30 Sep 20 2,503 10,774 104,782 1,124 12,328 298 131,829
Total 2020 YTD  8,839 35,337 355,615 3,754 40,726 1,042 445,333