The OIC, which launched alongside wider whiplash reforms in May 2021, is used for road traffic accident injury claims worth less than £5,000.
According to quarterly data (up to December 2022) published by the OIC last week, the volume of cases is rising, with 22,630 claims during the quarter compared to a total of 76,873 since it launched.
However, the figures also show a steady rise in the average settlement time from 45.2 days in the OIC’s first quarter after launch to, in subsequent quarters, 85 days, 139 days, 175 days, 208 days and, in the most recent quarter, 227 days.
The OIC report states: ‘This is to be expected as we are now seeing cases settle with more complex injuries and longer prognoses. It is likely to continue to rise.’
The Justice Committee began an inquiry last month into the impact of the 2021 whiplash reforms and how well the OIC is working. Submitting evidence this week, CILEX warned the rise in settlement times with cases taking three-quarters of a year to resolve is ‘being seen as a norm’.
CILEX questioned the accessibility of the portal for unrepresented lay claimants, who are often unable to ‘effectively collate’ the evidence, particularly since claims may be complex and intricate. Moreover, 88% of OIC claimants are legally represented but there is no costs recovery; therefore clients must pay lawyers out of their damages, which makes the work less financially viable, resulting in small and medium-sized firms dropping out of the whiplash claims market.
CILEX president Matthew Huggett said: ‘We would like to see better legal education, advice and guidance for those using the portal and ongoing monitoring to ensure that consumer choice is not being compromised.’
