New law regulating accident claims - 17 November 2006

Q1: I understand that there’s a new law relating to accident claims. How will it affect me if I want to make a claim against an employer or similar?

A1: The new law is the Compensation Act 2006, which aims to curb the practice of “blaming and claiming”. There has been increasing public concern about the more extreme examples of claims for negligence and breach of statutory duty. School trips, for example, are becoming rare owing to the perceived risk of litigation should an accident occur. To help prevent this, the Act says that if an activity is “desirable”, e.g. socially or educationally worthwhile, it should go ahead and the standard of care required to avoid a negligence claim should be limited, for example, to the provision of a supervisor carrying out his/her functions properly.

It is uncertain what will be classed as “a desirable activity” as yet but this means that some accident claims may not be considered valid. Although fewer people may be able to claim, it’s good news for anyone involved in running voluntary bodies, local clubs and associations, who are less likely to be faced with costly accident claims against them.

Q2: I had an accident at work, my boss apologised and sent me a "get well” card. Was he admitting he was liable for the accident?

A2: There was some doubt in the past whether this would be an admission of liability but the new Compensation Act 2006 (s 2) says emphatically "no”, it doesn’t mean they are guilty.

Q3: Does this new Act mean claims will increase?

A3: It’s unlikely. The Act will regulate unscrupulous claims companies, many of whom use ‘sharp’ practices to drum up claims, including canvassing passers-by in the street. A regulatory regime will be established by Spring 2007 which will monitor these ‘claims farmers’ and attempt to ensure that clients are dealt with fairly. Anyone offering claims management services without proper authorisation could be imprisoned for up to 2 years. These changes will not affect solicitors, whose professional standards will continue to be strictly regulated by the Law Society.

Larry Rawlinson, Associate and Personal Injury specialist, Wards: 01454 316789
Larry.rawlinson@wards.uk.com