Approximately 385,000 claims that were started on the Official
Injury Claim (OIC) Service system since its launch “remained
unresolved” the Ministry of Justice has said in its response to
the Justice Committee.
In its report published in September this year, the cross-party
committee of MPs warned of a “growing number” of 349,000
unresolved cases in the OIC portal and called on the MoJ to
investigate the backlog.
MPs on the Committee raised concerns that only “just over a
quarter” had reached settlement, despite the system being set up
in May 2021 as part of the Government’s Whiplash Reform Programme
to reduce the number and cost of whiplash claims in England and
Wales.
The report highlighted that for the minority of cases that have
reached a settlement to date, the average time taken to do so is
251 days and was predicted to increase further as more complex
cases, which have taken longer to reach conclusion, begin to
settle.
The Justice Committee recommended the MoJ “investigates further
the reasons for the growing number of unresolved cases and the
deterioration in the timeliness of reaching settlement and
publishes its findings by the end of the year”.
In its response the Government acknowledged the Committee’s
concerns stating: “Timely progression of claims is of great
importance to ensure access to justice and is therefore something
we are currently investigating in detail.”
It added: “MoJ agrees that more work needs to be undertaken to
better understand the flow of claims through the OIC process.
Additional data will be published from January 2024 to help to
provide greater clarity on the impact of dormant claims on
outstanding claim volumes.”
The MoJ stressed that “context is an important consideration when
looking at the issue of unresolved claims” adding: “As of 31
September, around 385,000 claims that were started on the system
since launch remained unresolved.
“However, for a variety of reasons, not all of these are claims
actively seeking settlement and this can distort settlement rate
figures and timeliness. Whilst the majority of claims proceed
through OIC towards settlement, there are an increasing number of
claims sitting on the system where no positive action to move
them forward has been taken for some time and could, therefore,
be considered as dormant.”
The Chair of the Justice Committee, Sir MP (Con, Bromley & Chislehurst),
said:
“The Committee welcomes the MoJ’s commitment to investigate
in detail the timely progression of claims following concerns
raised in our report on the workings of the OIC Service
portal.
“However, it is disappointing to see that unresolved claims
now stand at around 385,000 – a 10% increase on the
figure cited in our report. It is incumbent on the MoJ to examine
the reasons for this and the Committee awaits the publication of
additional data early next year relating to the impact of dormant
claims on outstanding claim volumes.
“One of the objectives of the OIC portal was to simplify and
speed up the process of making a claim for whiplash injuries and
it is vital that becomes a reality for all those using the system
both represented and unrepresented.”
Notes to editors
As part of the whiplash reforms, the Ministry of Justice
commissioned the Motor Insurers’ Bureau (MIB) to develop an
online portal; Official Injury Claim, for managing low value road
traffic accident claims.
Official Injury Claim (OIC) is a free and independent service
designed to support individuals who have suffered minor injuries
arising from an RTA to claim compensation, without the need for
legal help.
This inquiry examined the effect of these reforms on the number
of minor personal injury claims to date. It also looked at how
the OIC service operates and considered whether it ensures access
to justice.
The inquiry also examined to what extent the measures met the
Government’s objective of reducing the cost of whiplash claims to
the economy and to what extent any savings are being passed on to
motorists through lower insurance premiums.
