As the Official Injury Claim portal reaches its fourth birthday, the Association of Consumer Support Organisations calls for change.
The Association of Consumer Support Organisations (ACSO) is calling for a comprehensive government review of the Official Injury Claim (OIC) portal and wider personal injury legal reforms, as significant problems remain four years after the portal’s launch.
The OIC, which processes minor injury claims under £5,000, has handled over a million claims since its inception but continues to face criticism for its inefficiencies and complexity.
ACSO, a not-for-profit membership body that represents the interests of consumers in the UK’s civil justice system, argues that a root-and-branch review is necessary to assess whether the reforms have truly delivered on their promises to consumers.
Concerns over motor insurance promises
ACSO’s executive director, Matthew Maxwell Scott, has highlighted the long-awaited study by the Financial Conduct Authority (FCA) into whether insurers have passed on £35 per premium per year in savings to motorists, as initially promised. With motor insurance costs still at historic highs, he expressed doubt that insurers have met their obligations.
“Motor insurers agreed to compensate consumers in return for them losing some of their rights of redress following an accident,” said Maxwell Scott. “Given the cost of motor insurance remains near record levels, we are sceptical that insurers have met their promises, but no doubt they will have some excuses ready.”
Drop in claims raises questions
One of the key justifications for the OIC portal was to reduce unnecessary or fraudulent claims. However, Maxwell Scott pointed out that claims have dropped by approximately 50% since 2018, despite stable vehicle numbers and mileage.
“People are still getting injured, but for a variety of reasons, they are choosing not to claim,” he said. “We need to know why, especially as the cost of motor insurance soared to record high levels in 2024.”
The OIC was designed to be consumer-friendly, yet only around 10% of claimants use it unaided. ACSO is questioning whether the complexity of the process deters claimants from even starting a case.
Mixed injury claims still stuck
Another persistent issue is the backlog of mixed injury claims – cases involving both whiplash and other injuries. Despite a Supreme Court ruling in 2024 clarifying the legal framework for these claims, ACSO estimates that at least 500,000 such cases remain stuck in the portal.
“We expected the backlog to shift, but it has not,” said Maxwell Scott. “The review should investigate this and explore how the sector can work together to create frameworks for quicker, fairer settlements.”
He also pointed to ongoing delays in the County Courts, which mean cases that cannot be settled in the portal take over a year to be heard, allowing defendants to delay payouts further.
Call for immediate action
ACSO is urging the FCA to publish its findings on insurance premium savings immediately and is calling on the Ministry of Justice to launch a full review of the Civil Liability Act and the OIC portal.
“he whiplash reforms came about as a result of intense insurer lobbying,” said Maxwell Scott. “Now, we need an equally intense examination of what was promised versus what has been delivered.”
He also criticised the apparent dissolution of the government’s Motor Insurance Taskforce, urging the new Transport Secretary to reinstate it as part of the review process.
“As long as motor insurance is a compulsory product, giving consumers no power of exit, it needs to be held to exacting standards when it comes to transparency and value for money,” he added. “Currently, no such standards exist.”
Image credit: © Jonathan Borba from Pexels via Canva
Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at [email protected]
