Civil Liability Bill Continues Progress Through Commons

The Civil Liability Bill had its second reading in the House of Commons yesterday evening, in which the principles of the proposed legislation were debated.

Pointing to rising whiplash claims in the context of reducing accident numbers and improving vehicle safety, the Lord Chancellor noted "Our reforms are focused on ensuring that genuine claimants have access to justice, receive a proportionate amount of compensation and that the system works for all who use it honestly."

Despite the provisions being strongly opposed by Labour, even being labelled as 'bogey man' legislation in relation to the spectre of fraudulent claims, the Government showed no signs of backing down on many of the provisions. Labour advised they would not support the Bill unless it is substantially amended, with battle lines being drawn for areas of likely amendment during Committee Stage.

Whiplash

The whiplash provisions were hotly contested during the debate and some concessions were made.

The Lord Chancellor accepted at the outset that vulnerable road users (cyclists, motor cyclists and pedestrians) will be excluded from both the tariff system and the small claims track increase. The Ministry of Justice had previously conceded in the Lords that such users would be exempt from the tariff, but not the small claims increase. This is a sensible amendment given the added complexity of such cases which comprise only a minor proportion of total claims.

The Government also pledged to ensure that insurers will pass on savings to motorists, whilst avoiding any undue administrative burden. This is supported in principle by insurers. The Treasury has already consulted on proposed provisions and final draft Regulations are expected to be published at the Committee Stage.

In relation to medical reports, which will now need to be obtained in all cases prior to settlement, it was also confirmed that medical examinations would be face to face rather than via the telephone. There had, however, been no previous indication that examinations would be anything other than face to face under the existing Medco system.

The tariff system was also scrutinised, with Labour echoing calls by Lord Woolf to remove this provision from the Bill. In the alternative, Labour called for the levels to be set by the Judicial College. The Government has accepted that the Lord Chancellor will consult the Lord Chief Justice on the tariff, however, it remains to be seen whether this will go far enough for the...