The new Civil Liability Bill – which is expected to cut whiplash claims – is now on track to become law in 2020 after passing through its third state in the House of Commons.

The Bill is intended to reform the process for whiplash claims

introduced into the House of Lords on 20 March 2018, the Civil Liability Bill seeks to reform the claims process for whiplash claims with injuries lasting up to two years resulting from road traffic accidents, and to make changes to the way in which the personal injury discount rate, applied to lump sum awards of damages for future loss, is set.

The Bill, which is now due to return to the House of Lords for amendments, seeks to cap damages for whiplash claims and ban settlements that are struck without medical evidence, as well as change the way that the so-called ‘discount rate’ for serious, long-term injury is set. It’s estimated that it will bring the average cost of an annual car insurance premium down by around £35 by passing on the savings made.

Janet Connor, the AA’s director of insurance, welcomed the passage of the Bill. She commented: “There is no doubt that this Bill and its associated secondary legislation will help reduce insurance injury claims costs which are by far the highest in Europe.

“This news should be greeted by drivers as a victory for common sense and put an end to the insidious cold-call claims industry.”