Legal Reforms

Unintended consequences from increasing small claims limit

Kennedys has warned that the Chancellor George Osbourne “must consider the potential for unintended consequences” following his determination to continue to tackle fraud and the compensation culture surrounding whiplash claims. The law firm noted: “Increasing the small claims limit goes beyond whiplash and motor-related injury claims (if that is the intention). Employers’ liability and public liability claims will fall within the change, including lower value disease claims, such as noise-induced hearing loss claims. The opportunity for non-regulated claims management companies to step into this arena is apparent. Regulatory measures will be needed to ensure that claims farming practices are prevented; thereby protecting the genuine consumer.”