The Law Society has told the government that its proposals to increase the small claims limit in personal injury cases stem from propaganda, generated by insurers.

Responding to a consultation on arrangements concerning the small claims limit for such cases, the Law Society said the insurance industry is lobbying the government into adopting a policy that will see many thousands of genuine accident victims left without the benefit of expert legal advice to assist them in their claims.

Desmond Hudson, chief executive of the Law Society, said: "The government's sensible objective to reduce fraudulent or exaggerated accident claims will simply not work if the government simply adopts the insurance industries’ plans. Different costs limits for some types of personal injury claim and other steps to place obstacles in the way of claimants will increase shareholder profits for insurers, while victims who have been injured in an accident are faced with little or no hope for justice. Anyone who doubts this should read the E-Sure flotation prospectus.

“These proposals risk penalising genuine accident victims. Restrictions on recoverable costs are simply intended to make it harder to claim and obtain justice.

“Raising the small claims limit for personal injury cases will create an uneven playing field. Ordinary victims who represent themselves will be confronted by insurers who specialise in contesting such claims. That does not assist access to justice. Instead, it tips the odds in favour of the powerful and yet again unfairly promotes the interests of the insurance lobby whose promises to the Prime Minister to reduce motor premiums is likely to be unfulfilled.”

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