The cap, which will come into force in October, is announced today by Chris Grayling, the Justice Secretary. A Ministry of Justice spokesman said it followed concerns that some people were being encouraged to make claims so doctors could profit from drawing up reports.
The new measures follow government reforms to the laws around “no win no fee” deals. Lawyers can no longer double their fees if they win, at the expense of defendants and their insurers.
Mr Grayling said: “Honest drivers have been bearing the cost of a system that has been open to abuse and it is time for a change. “We are determined to have a robust system for medical evidence – so genuine claims can still be settled but fraud is driven out of the market.”
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