27th Nov 2015 14:07
LONDON (Alliance News) - Consumer professional services company Fairpoint Group PLC on Friday said it does not expect any impact to its expectations for 2015 or 2016 from the UK government's Autumn Statement announcement on limiting whiplash claims, while motor support services company Redde PLC said it supports any push by the government to eliminate fraudulent claims.
UK Chancellor George Osborne on Wednesday said the government will consult on ending the right to cash compensation for minor whiplash claims. Osborne also is planning to cut the legal costs related to the claims by directing personal injury claims of up to GBP5,000 to the small claims court. Previously, the upper limit for claims going to the small claims court had been GBP1,000.
Fairpoint, which owns a legal services business which, among other things, handles road traffic accident claims, said the notion of extending the small claims limit has been going on for some time and said it had already taken measures to position itself well should the change be made.
Fairpoint said the whiplash claim changes, however, though not hitting its 2015 and 2016 expectations, are expected to be implemented in 2017, and it did not provide any guidance on whether it expected to take a hit from there on.
Shares in Fairpoint were up 4.2% to 175.50 pence on Friday.
Meanwhile, Redde, which runs the NewLaw legal business, said it supports any efforts to eliminate fraudulent claims being made and said the majority of cases handled by its NewLaw business are on behalf of insurers and brokers rather than claimants.
It echoed Fairpoint in saying none of the details of the plans are yet known and will not be until a full consultation has taken place. Redde added the activities it handles which would be covered by the legislation which has been proposed would cover less than 2.5% of its total revenue.
Shares in Redde were down 5.3% to 153.50 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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