It comes as no surprise that the insurance companies are once again failing to fulfill promises of cuts to motor insurance premiums, yet these companies continue to wield enormous power over the government and ultimately over access to justice in the UK.
Yet, in the autumn statement, the chancellor proposed to reduce motor insurance premiums by removing the right to any compensation for minor soft tissue injuries and increasing the small claims court limit for personal injury claims. Baldwin said ‘the government expects that the insurance industry will pass on savings to consumers’. Advertisement This is not the first time the government has had high expectations of insurers. In recent years, a raft of legal reforms has been introduced, yet the insurance industry has failed to live up to its promise to pass on savings to customers through reduced premiums. If the government’s proposals are implemented, many injured people will not be able to make valid claims and others will not be able to afford the legal help they need to bring genuine claims through the small claims court.