Will the increased small claims track limit make any difference to the surge in illness claims?
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‘The Government has announced that it will increase the small claims limit to £5,000 – but only for “RTA related personal injury” claims. For all other personal injury claims the new limit will be £2,000. The new limits are expected to be introduced by 1 October 2018 although arguably it could be much sooner given the change can be made by secondary legislation. Claimants’ solicitors have unsurprisingly expressed their disappointment at the announcement.
‘The combination of the low small claims limit and QOCS means that the insurance industry has generally seen a surge in spurious claims. The travel industry in particular has seen a surge in gastric illness claims which has resulted in excessive costs being paid to claimants. There has been a noticeable increase in claims on the back of claims management companies who are aggressively marketing travellers both in resort and on social media.
‘Whilst there is no reason why the small claims limit for all personal injury claims could not be raised to £5,000, the increase to £2,000 is a progressive move towards ensuring that claimants receive limited costs. Short-lived non complicated gastric illness claims should receive limited damages and therefore should come within the new limit of £2,000. However, 2018 is too far away and claimants’ lawyers will easily defeat the £2,000 small claims limit by exaggerating claims, or grouping claims together so that higher costs can be obtained. The real answer therefore is for these claims to be put into the MOJ Portal regime which results in fixed costs, but only currently applies to cases which occur in this jurisdiction, and so does not apply to holiday illnesses which occur abroad.’
