James Dalton, head of motor and liability at the Association of British Insurers, has proposed the dispensation of compensation for law-value RTA claims where the injuries are minor in favour of a rehab‑only scheme. The justification for this radical proposal is unclear from the article, though it seems to be part of the insurance industry’s wider aversion to purported exaggerated and fraudulent RTA claims.
We believe the proposal is flawed. Most RTA claims are genuine; they are about real accidents and real injuries. Even where the injuries are minor, they can still affect a person’s enjoyment of her life, her ability to work and her livelihood. These are legitimate losses and clients should be compensated for them. That the injuries are ‘minor’ does not make them any less deserving of compensation.
Moreover, it’s difficult to see how dispensing with compensation for minor claims will stop exaggerated or fraudulent claims. Arguably, it will increase them because client’s that are so inclined will want to exaggerate their injuries to avoid their being classified as ‘minor’ and to attract compensation.