The Financial Guidance and Claims Bill is well-advanced in the Lords – it gets a third reading today – and is due to get to the Commons early next year. It will move the regulation of the claims management sector from the Ministry of Justice to the Financial Conduct Authority; a measure likely to take effect well into 2018 or perhaps even later. It is also worth noting that the Government has committed to amending the Bill – when it gets to the Commons – in order to ban cold-calling for claims leads. While the overall approach is both necessary and sensible, getting there has taken far too long given that this regulatory tightening was first suggested in the March 2016 review of the claims management sector but won’t bite until at least three years after that. [Contrast that with the far quicker approach to tackling abuses in holiday sickness cases, where we expect fixed costs controls to kick in from April 2018.]
David Lidington MP, Lord Chancellor and Secretary of State for Justice, appeared before the Commons Justice Select Committee earlier today (25 October) and re-confirmed that the Government intends to increase the small claims limit for personal injury claims to £5,000 for road traffic claims (whiplash injuries, in particular) and to £2,000 for other types of injury.
Compulsory motor insurance across Europe currently is under the scrutiny of the European Commission, which is carrying out its REFIT review of the Codified Motor Insurance Directive. Although much of that is likely to focus on the challenges of the Vnuk decision, it seems that the other European institutions and stakeholders are also considering the future shape of potentially important aspects of motor insurance law.