My Lords, I declare my interests as set out in the register. It is a great pleasure to follow the noble and learned Lord, Lord Etherton, and I thank my noble friend Lord Wolfson of Tredegar for setting out the purpose of these regulations so clearly. Indeed, the Minister wrote to noble Lords in February of this year setting out the plans for whiplash reform. I strongly welcome the reform and these regulations.
I recognise, of course, that there are genuine whiplash claims, but it is known that there are many “creative” claims. The regulations will help deter them and, it is estimated, will result in savings of approximately £1.2 billion, and of £35 on average on motor insurance premiums, which insurers will pass on.
The provision of a tariff for damages payable for pain and suffering and loss of amenity is welcome. It is obviously central to require a minimum of medical evidence and a ban on settlement without medical evidence, and this is indeed provided for in the regulations. It also seems sensible to provide for a discretionary uplift of up to 20% for appropriate exceptional circumstances. The small claims track limit being raised from £1,000 to £5,000 is also very sensible.
The Association of British Insurers has mentioned that the reforms are very welcome, but it cautions that the potential for claimants to focus increasingly on additional minor injuries, as my noble friend Lord Hunt pointed out, may result in higher awards than the tariffs for whiplash. I hope that my noble friend will be able to say something about keeping ahead of the fray on these developments, which could dilute the beneficial effects of these very welcome reforms.
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