Legal expenses insurance and assistance services provider Motorplus says Motor Legal Expenses Insurance will be vital for customers following the Personal Injury reforms.
Following part one of the government’s response to the ‘Reforming the soft tissue injury (‘whiplash’) claims process’, published on 23 February, Motorplus has urged brokers to review their legal expenses provision to ensure consumer needs are being met.
Jason Tripp, Director at Motorplus, said “Whilst the measures published by the reforms are intended to ‘disincentivise minor, exaggerated and fraudulent road traffic accident (RTA) related whiplash claims’, the reality is that this one size fits all approach means that genuine victims will find themselves massively disadvantaged by these changes.”
Press headlines have promised savings in insurance premiums and therefore a ‘consumer win’, but what these reforms mean to the individual victim of a non-fault RTA, has received no popular press coverage so far. Pursuing a claim on the small claims track may be a daunting prospect for the average motorist and clearly, consumer education is necessary to ensure that motorists are fully aware of what protection and support is provided by their insurance policy post October 2018.
Jason went on to say, “The option to provide a high level of legal assistance for customers will still be available through a quality Motor Legal Expenses Insurance policy. Ahead of the consultation we reviewed our policy wording to ensure it would be future proofed, regardless of the outcome of the consultation. For example, whilst many policies tend to exclude small claims, our policies don’t, meaning brokers working with us are already in a good position.
As a consequence, brokers should ensure that they are partnering with a Legal Expenses provider that offers quality products, able to cover a full range of future claims scenarios. The changes may seem some way off, but brokers should be planning now to have adequate provision in place from October this year.
Our position has always been to seek the best outcome for the customer and this remains the case. With 30 years of expertise in the sector, we are ideally placed to help brokers deliver a legal expenses solution that works for their business and for their customers.”
Read more about our views on the Personal Injury reforms
In addition to this news release we’ve written for Insurance Times and Modern Claims Magazine on the PI reforms and the changes to whiplash compensation.
4 April 2017 – Insurance Times – The Knock on Effects of the Personal Injury Reforms
5 May 2017 – Modern Claims Magazine – The Need for MLEI