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Compensation Culture and Tort Reform

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Compensation culture and tort reform

‘Compensation culture’bhas been described as ‘an amorphous term’ by Morris.b It is generally used to connote a society in which there is a propensity for anyone who has suffered a personal injury to seek punitive damages through litigation from someone connected to the injury, whether or not anyone was actually at fault, thus implying unreasonable willingness to seek legal redress when things go wrong.

Commentators such as Morris, Robins and Williams have debated the existence of a compensation culture yet, in 2005, the House of Commons Constitutional Affairs Committee created a new session to investigate whether this compensation culture truly exists.bThe third report of this session is particularly illustrative, unequivocally stating that such a culture does not existband its existence is not a possibility in the near future.bThis report followed a publication by the Better Regulation Task Force (BRTF), which concluded that there is not a compensation culture, but that action was required to counter the popular perception that there is.

Evidence from the Compensation Recovery Unit (CRU) supports this view as shown below.
The CRU holds the most comprehensive and reliable data on the number of current personal injury claims as ‘all compensators must provide prompt notification to CRU of any claim for personal injury made against them.’

It is misleading to talk about general trends in our propensity to claim because different types of claim have followed different trends. Thus it is necessary to look at employers’ liability, clinical negligence, public liability and road traffic accident claims separately to examine the trends in our propensity to claim. From the CRU statistics it does appear that there was a significant

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