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Review to injury small claims limit back on track?

19 November 2015
Caroline Dineage has confirmed that proposals to increase the small claims limit will be included in an Insurance Fraud Taskforce report expected by the end of December. 

The limit, which has been set at £1,000 since 1999, has been reviewed on a number of occasions since, but has remained unchanged, resulting in most injury claims falling outside the small claims limit. Other reforms, including the “Portal” for pre-action settlement of low value injury claims and fixed costs, have instead been introduced to make the cost of these claims more proportionate. 

An increase in the track limit unless accompanied by a significant change in small claims costs could mean a further reduction in the cost of claims, which may be welcomed by many defendants. However, there are real risks of increased frictional costs, through higher litigation rates and more self-represented litigants. 

Increased use of the small claims process could also undermine work that has been done by insurers and claimant solicitors to reduce undetected fraud, through initiatives such as ask CUE PI .

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