delete The Whiplash Injury (Amendment) Regulations 2025
These Regulations amend the Whiplash Injury Regulations 2021 by introducing a dual-table system for whiplash injury compensation in England and Wales. Table 1 applies to causes of action before 31st May 2025; Table 2 applies thereafter, with compensation amounts approximately 15-17% higher in Table 2. The regulation extends the existing fixed-tariff compensation regime for soft tissue injuries with new, higher monetary amounts.
This regulation perpetuates government-mandated price-fixing for personal injury compensation, a classic intervention that distorts market signals. The dual-table system adds complexity without justification — the 15-17% increase appears arbitrary rather than derived from actuarial data. Fixed compensation schedules enable fraudulent claims (whiplash fraud has plagued UK motor insurance), reduce insurer competition, and transfer costs to all policyholders through higher premiums. The original 2021 Regulations represented EU-derived interference in private contracting; this amendment merely increases the distortion. A free market in motor insurance would allow competitive pricing of risk, benefiting consumers through lower premiums and reducing the litigation culture these schedules incentivise.