The whiplash portal, or the Official Injury Claim (OIC) system, was introduced in May 2021.  The aims of the introduction were clear: make the claims process more efficient, take excess costs out of the system, and pass on subsequent savings to motorists.

However it now appears that as of the end of September, almost 385,000 claims which were started in the portal since its launch, have stalled and remain unresolved.

The Ministry of Justice are now investigating these claims, and in response the government has commented,  ‘Whilst the majority of claims proceed through OIC towards settlement, there are in increasing number of claims sitting in the system where no positive action to move them forward has been taken for some time and could, therefore, be considered as dormant.’

It’s thought that a number of the stalled claims reflect cases where liability has been denied by the Defendant and the Claimant no longer wishes to continue with those claims, but a number have also been placed on hold pending the result of the Rabot case on mixed injury claims.  Rabot is due to be heard in February in the Supreme Court, and the outcome of the case is thought to have an effect on large number of claims currently within the portal.

MPs on the Justice committee voiced concerns that only ‘just over a quarter’ of cases in the portal had reached settlement, despite the aim of the portal to make the claims process more efficient.

The Chair of the Justice Committee, Sir Bob Neill MP (Con, Bromley & Chislehurst), said:

“The Committee welcomes the MoJ’s commitment to investigate in detail the timely progression of claims following concerns raised in our report on the workings of the OIC Service portal.

However, it is disappointing to see that unresolved claims now stand at around 385,000 – a 10% increase on the figure cited in our report. It is incumbent on the MoJ to examine the reasons for this and the Committee awaits the publication of additional data early next year relating to the impact of dormant claims on outstanding claim volumes.

One of the objectives of the OIC portal was to simplify and speed up the process of making a claim for whiplash injuries and it is vital that becomes a reality for all those using the system both represented and unrepresented.”

The Committee’s report also commented that it should be established how the estimated saving of £1.2bn as a result of the reforms, have been subsequently passed onto motorists by the insurers.

No date has been given as to when the findings of an investigation will be published, but Law Society president Nick Emmerson has called on the MoJ to tackle the work ‘with urgency’.

Here at Box Legal we have been offering after the event legal expense insurance since 2004 and have a wealth of experience. We have competitively priced ATE insurance policies available for all types of personal injury claims and can also arrange legal expense insurance cover for non-personal injury claims such as housing disrepair and financial mis-selling matters.

The number and variety of cases we arrange cover for is always increasing and so please contact us to discuss any after the event insurance requirements. We are happy to discuss and develop ATE insurance for case types we do not already insure.

If you would like to speak to us or obtain further information then please call on 0870 766 997, or email info@boxlegal.co.uk