Civil Liability Bill (HC Bill 264)

Part 1 Whiplash

Whiplash injuries

1 “Whiplash injury” etc

(1) 5In this Part “whiplash injury” means an injury of soft tissue in the neck, back
or shoulder that is of a description falling within subsection (2), but not
including an injury excepted by subsection (3).

(2) An injury falls within this subsection if it is—

(a) a sprain, strain, tear, rupture or lesser damage of a muscle, tendon or
10ligament in the neck, back or shoulder, or

(b) an injury of soft tissue associated with a muscle, tendon or ligament in
the neck, back or shoulder.

(3) An injury is excepted by this subsection if—

(a) it is an injury of soft tissue which is a part of or connected to another
15injury, and

(b) the other injury is not an injury of soft tissue in the neck, back or
shoulder of a description falling within subsection (2).

(4) For the purposes of this Part a person suffers a whiplash injury because of
driver negligence if—

(a) 20when the person suffers the injury, the person—

(i) is using a motor vehicle other than a motor cycle on a road or
other public place in England or Wales, or

(ii) is being carried in or on a motor vehicle other than a motor cycle
while another uses the vehicle on a road or other public place in
5England or Wales,

(b) the injury is caused—

(i) by the negligence of one or more other persons, or

(ii) partly by the negligence of one or more other persons and partly
by the negligence of the person who suffers the injury, and

(c) 10the negligence of the other person or persons consists in an act or acts
done by the person or persons while using a motor vehicle on a road or
other public place in England or Wales.

(5) The fact that the act or acts constituting the negligence of the other person or
persons is or are also sufficient to establish another cause of action does not
15prevent subsection (4)(b) being satisfied.

(6) For the purposes of this section references to a person being carried in or on a
vehicle include references to a person entering or getting on to, or alighting
from, the vehicle.

(7) In this section—

• 20“act” includes omission;

• “motor cycle” has the meaning given by section 185(1) of the Road Traffic
  Act 1988;

• “motor vehicle” means a mechanically propelled vehicle intended or
  adapted for use on roads;

• 25“road” means a highway or other road to which the public has access, and
  includes bridges over which a road passes.

2 Power to amend section 1

(1) The Lord Chancellor may by regulations amend the definition of “whiplash
injury” in section 1, but not so as to include an injury of soft tissue other than
30soft tissue in the neck, back or shoulder.

(2) Before making regulations under subsection (1), the Lord Chancellor must—

(a) review the definition of “whiplash injury” in section 1,

(b) as part of the review, consider whether to amend section 1,

(c) prepare and publish a report of the review, including a decision
35whether or not to amend section 1 and the reasons for the decision, and

(d) lay a copy of the report before Parliament.

(3) After laying the copy of the report before Parliament and before making
regulations under subsection (1), the Lord Chancellor must consult—

(a) the Lord Chief Justice;

(b) 40the General Council of the Bar;

(c) the Law Society;

(d) the Chief Medical Officer of the Department of Health and Social Care;

(e) the member of staff of the Welsh Government designated by the Welsh
Ministers as the Chief Medical Officer for Wales;

(f) 45such other persons or bodies as the Lord Chancellor considers
appropriate.

(4) The Lord Chancellor may not carry out the first review under subsection (2)
before the end of the period of three years beginning with the day on which
section 1 comes into force.

(5) After the first review, the Lord Chancellor may not carry out a review under
5subsection (2) before the end of the period of three years beginning with—

(a) if regulations under subsection (1) were made following the previous
review, the day on which those regulations came into force, or

(b) if no regulations under subsection (1) were made following the
previous review, the day on which a copy of the report of the previous
10review was laid before Parliament.

(6) A statutory instrument containing regulations under this section is subject to
affirmative resolution procedure.

Damages

3 Damages for whiplash injuries

(1) 15This section applies in relation to the determination by a court of damages for
pain, suffering and loss of amenity in a case where—

(a) a person (“the claimant”) suffers a whiplash injury because of driver
negligence, and

(b) the duration of the whiplash injury or any of the whiplash injuries
20suffered on that occasion—

(i) does not exceed, or is not likely to exceed, two years, or

(ii) would not have exceeded, or would not be likely to exceed, two
years but for the claimant’s failure to take reasonable steps to
mitigate its effect.

(2) 25The amount of damages for pain, suffering and loss of amenity payable in
respect of the whiplash injury or injuries, taken together, is to be an amount
specified in regulations made by the Lord Chancellor.

(3) If the claimant suffers one or more minor psychological injuries on the same
occasion as the whiplash injury or injuries, the amount of damages for pain,
30suffering and loss of amenity payable in respect of the minor psychological
injury or the minor psychological injuries, taken together, is to be an amount
specified in regulations made by the Lord Chancellor.

(4) If regulations made by the Lord Chancellor so provide, the amount of damages
for pain, suffering and loss of amenity payable in respect of—

(a) 35the whiplash injury or injuries, and

(b) a minor psychological injury or injuries suffered by the claimant on the
same occasion as the whiplash injury or injuries,

taken together, is to be an amount specified in regulations made by the Lord
Chancellor (notwithstanding subsections (2) and (3)).

(5) 40Regulations under this section may in particular—

(a) specify different amounts in respect of different durations of injury;

(b) specify amounts in respect of minor psychological injuries by reference
to the duration of the related whiplash injury or injuries.

(6) Regulations under this section may provide for a person to be treated as if the
person had taken reasonable steps to mitigate the effect of the person’s
whiplash injury or minor psychological injury.

(7) Regulations under this section amending or replacing earlier regulations may
5increase or reduce amounts payable in respect of injuries.

(8) Nothing in this section prevents a court, in a case where a person suffers an
injury or injuries in addition to an injury or injuries to which regulations under
this section apply, awarding an amount of damages for pain, suffering and loss
of amenity that reflects the combined effect of the person’s injuries (subject to
10the limits imposed by regulations under this section).

(9) Nothing in this section prevents the amount of damages payable being
reduced by virtue of section 1 of the Law Reform (Contributory Negligence)
Act 1945.

(10) This section does not apply in relation to damages payable by a person because
15of the person’s breach of the duty under section 143(1)(b) of the Road Traffic
Act 1988 (duty not to cause or permit any other person to drive without
insurance or security in respect of third party risks).

(11) The Lord Chancellor must consult the Lord Chief Justice before making
regulations under this section.

(12) 20A statutory instrument containing regulations under this section is subject to
affirmative resolution procedure.

4 Review of regulations under section 3

(1) The Lord Chancellor must carry out reviews of regulations made under section
3.

(2) 25The first review must be completed before the end of the period of three years
beginning with the day on which the first regulations under section 3 come into
force.

(3) Subsequent reviews must be completed before the end of the period of three
years beginning with the day on which the previous review was completed.

(4) 30The Lord Chancellor must prepare and publish a report of each review.

(5) The Lord Chancellor must lay a copy of each report before Parliament.

5 Uplift in exceptional circumstances

(1) Regulations made by the Lord Chancellor may provide for a court—

(a) to determine that the amount of damages payable for pain, suffering
35and loss of amenity in respect of one or more whiplash injuries is an
amount greater than the tariff amount relating to that injury or those
injuries;

(b) to determine that the amount of damages payable for pain, suffering
and loss of amenity in respect of one or more whiplash injuries and one
40or more minor psychological injuries, taken together, is an amount
greater than the tariff amount relating to those injuries;

(c) in a case where the court considers the combined effect of—

(i) an injury or injuries in respect of which a tariff amount is
specified by regulations under section 3(2) or (4), and

(ii) one or more other injuries,

to determine that an amount greater than the tariff amount is to be
5taken into account when deciding the amount of damages payable for
pain, suffering and loss of amenity in respect of the injuries mentioned
in sub-paragraphs (i) and (ii).

(2) The regulations may require a court to be satisfied, before making the
determination mentioned in subsection (1)(a), (b) or (c), that—

(a) 10the degree of pain, suffering or loss of amenity caused by the whiplash
injury or injuries in question makes it appropriate to use the greater
amount, and

(b) it is the case that—

(i) the whiplash injury is, or one or more of the whiplash injuries
15are, exceptionally severe, or

(ii) where the person’s circumstances increase the pain, suffering or
loss of amenity caused by the injury or injuries, those
circumstances are exceptional.

(3) The regulations must specify the maximum percentage by which the greater
20amount mentioned in subsection (1)(a), (b) or (c) may exceed the relevant tariff
amount.

(4) Regulations under this section amending or replacing earlier regulations may
increase or reduce the maximum percentage.

(5) The Lord Chancellor must consult the Lord Chief Justice before making
25regulations under this section.

(6) A statutory instrument containing regulations under this section is subject to
affirmative resolution procedure.

(7) In this section “tariff amount” means—

(a) in relation to one or more whiplash injuries, the amount specified in
30respect of the injury by regulations under section 3(2);

(b) in relation to one or more whiplash injuries and one or more minor
psychological injuries, the amount specified in respect of the injuries by
regulations under section 3(4).

6 Rules against settlement before medical report

(1) 35A regulated person is in breach of this section if—

(a) the regulated person knows or has reason to suspect that a whiplash
claim is being made,

(b) the regulated person does, or arranges or advises the doing of, an act
mentioned in subsection (2), without first seeing appropriate evidence
40of the whiplash injury or injuries, and

(c) the regulated person is acting as such when the regulated person does,
or arranges or advises the doing of, that act.

(2) The acts referred to in subsection (1) are—

(a) inviting a person to offer a payment in settlement of the claim;

(b) 45offering a payment in settlement of the claim;

(c) making a payment in settlement of the claim;

(d) accepting a payment in settlement of the claim.

(3) The Lord Chancellor may by regulations make provision about what
constitutes appropriate evidence of an injury for the purposes of this section.

(4) The regulations may in particular—

(a) 5specify the form of any evidence of an injury;

(b) specify the descriptions of persons who may provide evidence of an
injury;

(c) require persons to be accredited for the purpose of providing evidence
of an injury;

(d) 10make provision about accrediting persons, including provision for a
person to be accredited by a body specified in the regulations.

(5) A statutory instrument containing regulations under this section is subject to
affirmative resolution procedure.

(6) In this section “whiplash claim” means a claim that consists only of, or so much
15of a claim as consists of, a claim for damages for pain, suffering and loss of
amenity caused by—

(a) one or more whiplash injuries suffered by a person on a particular
occasion because of driver negligence and in relation to which section
3 applies, or

(b) 20a whiplash injury or injuries within paragraph (a) suffered by a person
on a particular occasion and one or more minor psychological injuries
suffered by the person on the same occasion as the whiplash injury or
injuries.

7 Effect of rules against settlement before medical report

(1) 25The relevant regulator must ensure that it has appropriate arrangements for
monitoring and enforcing compliance with the restrictions imposed on
regulated persons by section 6.

(2) The relevant regulator may make rules for the purposes of subsection (1).

(3) The rules may in particular provide that, in relation to anything done in breach
30of section 6, the relevant regulator may exercise any powers that the regulator
would have in relation to anything done by the regulated person in breach of
another restriction (subject to subsections (5) and (6)).

(4) Where the relevant regulator is the Financial Conduct Authority, section 8
applies instead of subsections (1) to (3).

(5) 35A breach of section 6—

(a) does not make a person guilty of an offence, and

(b) does not give rise to a right of action for breach of statutory duty.

(6) A breach of section 6 does not make an agreement to settle the whiplash claim
in question void or unenforceable.

Settlement of whiplash claims

8 Regulation by the Financial Conduct Authority

(1) The Treasury may make regulations to enable the Financial Conduct
Authority, where it is the relevant regulator, to take action for monitoring and
5enforcing compliance with the restrictions imposed on regulated persons by
section 6.

(2) The regulations may apply, or make provision corresponding to, any of the
provisions of the Financial Services and Markets Act 2000 with or without
modification.

(3) 10Those provisions include in particular—

(a) provisions as to investigations, including powers of entry and search
and criminal offences;

(b) provisions for the grant of an injunction in relation to a contravention
or anticipated contravention;

(c) 15provisions giving Ministers or the Financial Conduct Authority powers
to make subordinate legislation;

(d) provisions for the Financial Conduct Authority to charge fees.

(4) The power to make regulations under this section may not be used to make
provision inconsistent with section 7(5) and (6).

(5) 20A statutory instrument containing regulations under this section is subject to
affirmative resolution procedure.

Interpretation

9 Interpretation

(1) For the purposes of this Part, in relation to an act mentioned in section 6(2), a
25regulator listed in the first column is the relevant regulator in relation to the
regulated person listed in the corresponding entry in the second column.

(2) A statutory instrument containing regulations under subsection (1) is subject
to negative resolution procedure.

(3) 30In this Part—

(a) a reference to making a claim against a person includes a reference to
notifying a person of the basis of a claim;

(b) a reference to making a payment to a person includes a reference to
conferring a benefit on a person or a third party.

(4) 35In this Part—

• “benefit” means—

  (a)

  any benefit, whether or not in money or other property and
  whether temporary or permanent, and

  (b)

  any opportunity to obtain a benefit;

• 40“claim” includes counter-claim;

• “whiplash claim” has the meaning given by section 6(6).

Part 2 Personal injury discount rate

10 Assumed rate of return on investment of damages

(1) 45Before section 1 of the Damages Act 1996 (assumed rate of return on

investment of damages) insert—

“A1 Assumed rate of return on investment of damages: England and Wales

(1) In determining the return to be expected from the investment of a sum
awarded as damages for future pecuniary loss in an action for personal
5injury the court must, subject to and in accordance with rules of court
made for the purposes of this section, take into account such rate of
return (if any) as may from time to time be prescribed by an order made
by the Lord Chancellor.

(2) Subsection (1) does not however prevent the court taking a different
10rate of return into account if any party to the proceedings shows that it
is more appropriate in the case in question.

(3) An order under subsection (1) may prescribe different rates of return
for different classes of case.

(4) An order under subsection (1) may in particular distinguish between
15classes of case by reference to—

(a) the description of future pecuniary loss involved;

(b) the length of the period during which future pecuniary loss is
expected to occur;

(c) the time when future pecuniary loss is expected to occur.

(5) 20Schedule A1 (which makes provision about determining the rate of
return to be prescribed by an order under subsection (1)) has effect.

(6) An order under this section is to be made by statutory instrument
subject to annulment in pursuance of a resolution of either House of
Parliament.””

(2) 25Before the Schedule to the Damages Act 1996 insert—

“Schedule 1

Periodic reviews of the rate of return

1 (1) The Lord Chancellor must review the rate of return periodically in
accordance with this paragraph.

(2) 30The first review of the rate of return must be started within the 90 day
period following commencement.

(3) Each subsequent review of the rate of return must be started within
the 5 year period following the last review.

(4) It is for the Lord Chancellor to decide—

(a) 35when, within the 90 day period following commencement, a
review under sub-paragraph (2) is to be started;

(b) when, within the 5 year period following the last review, a
review under sub-paragraph (3) is to be started.

(5) In this paragraph—

Civil Liability BillPage 10

• “90 day period following commencement” means the period of
  90 days beginning with the day on which this paragraph
  comes into force;

• “5 year period following the last review” means the period of
  5five years beginning with the day on which the last review
  under this paragraph (whether under sub-paragraph (2) or
  (3)) is concluded.

(6) For the purposes of this paragraph a review is concluded on the day
when the Lord Chancellor makes a determination under paragraph
102 or 3 (as the case may be) as a result of the review.

Conducting the first review

2 (1) This paragraph applies when the Lord Chancellor is required by
paragraph 1(2) to conduct a review of the rate of return.

(2) The Lord Chancellor must review the rate of return and determine
15whether it should be—

(a) changed to a different rate, or

(b) kept unchanged.

(3) The Lord Chancellor must conduct that review and make that
determination within the 140 day review period.

(4) 20In conducting the review, the Lord Chancellor must consult—

(a) the Government Actuary, and

(b) the Treasury.

(5) The consultation of the Government Actuary must start within the
period of 20 days beginning with the day on which the 140 day
25review period starts.

(6) The Government Actuary must respond to the consultation within
the period of 80 days beginning with the day on which the
Government Actuary’s response to the consultation is requested.

(7) The exercise of the power of the Lord Chancellor under this
30paragraph to determine whether the rate of return should be
changed or kept unchanged is subject to paragraph 4.

(8) When deciding what response to give to the Lord Chancellor under
this paragraph, the Government Actuary and the Treasury must take
into account the duties imposed on the Lord Chancellor by
35paragraph 4.

(9) During any period when the office of Government Actuary is vacant,
a reference in this paragraph to the Government Actuary is to be read
as a reference to the Deputy Government Actuary.

(10) In this paragraph “140 day review period” means the period of 140
40days beginning with the day which the Lord Chancellor decides
(under paragraph 1) should be the day on which the review is to
start.

Conducting later reviews

3 (1) This paragraph applies whenever the Lord Chancellor is required by
paragraph 1(3) to conduct a review of the rate of return.

(2) The Lord Chancellor must review the rate of return and determine
5whether it should be—

(a) changed to a different rate, or

(b) kept unchanged.

(3) The Lord Chancellor must conduct that review and make that
determination within the 180 day review period.

(4) 10In conducting the review, the Lord Chancellor must consult—

(a) the expert panel established for the review, and

(b) the Treasury.

(5) The expert panel must respond to the consultation within the period
of 90 days beginning with the day on which its response to the
15consultation is requested.

(6) The exercise of the power of the Lord Chancellor under this
paragraph to determine whether the rate of return should be
changed or kept unchanged is subject to paragraph 4.

(7) When deciding what response to give to the Lord Chancellor under
20this paragraph, the expert panel and the Treasury must take into
account the duties imposed on the Lord Chancellor by paragraph 4.

(8) In this paragraph “180 day review period” means the period of 180
days beginning with the day which the Lord Chancellor decides
(under paragraph 1) should be the day on which the review is to
25start.

Determining the rate of return

4 (1) The Lord Chancellor must comply with this paragraph when
determining under paragraph 2 or 3 whether the rate of return
should be changed or kept unchanged (“the rate determination”).

(2) 30The Lord Chancellor must make the rate determination on the basis
that the rate of return should be the rate that, in the opinion of the
Lord Chancellor, a recipient of relevant damages could reasonably
be expected to achieve if the recipient invested the relevant damages
for the purpose of securing that—

(a) 35the relevant damages would meet the losses and costs for
which they are awarded;

(b) the relevant damages would meet those losses and costs at
the time or times when they fall to be met by the relevant
damages; and

(c) 40the relevant damages would be exhausted at the end of the
period for which they are awarded.

(3) In making the rate determination as required by sub-paragraph (2),
the Lord Chancellor must make the following assumptions—

(a) the assumption that the relevant damages are payable in a
lump sum (rather than under an order for periodical
payments);

(b) the assumption that the recipient of the relevant damages is
5properly advised on the investment of the relevant damages;

(c) the assumption that the recipient of the relevant damages
invests the relevant damages in a diversified portfolio of
investments;

(d) the assumption that the relevant damages are invested using
10an approach that involves—

(i) more risk than a very low level of risk, but

(ii) less risk than would ordinarily be accepted by a
prudent and properly advised individual investor
who has different financial aims.

(4) 15That does not limit the assumptions which the Lord Chancellor may
make.

(5) In making the rate determination as required by sub-paragraph (2),
the Lord Chancellor must—

(a) have regard to the actual returns that are available to
20investors;

(b) have regard to the actual investments made by investors of
relevant damages; and

(c) make such allowances for taxation, inflation and investment
management costs as the Lord Chancellor thinks
25appropriate.

(6) That does not limit the factors which may inform the Lord
Chancellor when making the rate determination.

(7) In this paragraph “relevant damages” means a sum awarded as
damages for future pecuniary loss in an action for personal injury.

30Determination

5 When the Lord Chancellor makes a rate determination, the Lord
Chancellor must—

(a) give reasons for the rate determination made, and

(b) publish such information as the Lord Chancellor thinks
35appropriate about—

(i) the response of the expert panel established for the
review, or

(ii) in the case of a review required by paragraph 1(2), the
response of the Government Actuary or the Deputy
40Government Actuary (as the case may be).

Expert panel

6 (1) For each review of a rate of return required by paragraph 1(3), the
Lord Chancellor is to establish a panel (referred to in this Schedule as
an “expert panel”) consisting of—

(a) 45the Government Actuary, who is to chair the panel; and

(b) four other members appointed by the Lord Chancellor.

(2) The Lord Chancellor must exercise the power to appoint the
appointed members to secure that—

(a) one appointed member has experience as an actuary;

(b) one appointed member has experience of managing
5investments;

(c) one appointed member has experience as an economist;

(d) one appointed member has experience in consumer matters
as relating to investments.

(3) An expert panel established for a review of a rate of return ceases to
10exist once it has responded to the consultation relating to the review.

(4) A person may be a member of more than one expert panel at any one
time.

(5) A person may not become an appointed member if the person is
ineligible for membership.

(6) 15A person who is an appointed member ceases to be a member if the
person becomes ineligible for membership.

(7) The Lord Chancellor may end an appointed member’s membership
of the panel if the Lord Chancellor is satisfied that—

(a) the person is unable or unwilling to take part in the panel’s
20activities on a review conducted under paragraph 1;

(b) it is no longer appropriate for the person to be a member of
the panel because of gross misconduct or impropriety;

(c) the person has become bankrupt, a debt relief order (under
Part 7A of the Insolvency Act 1986) has been made in respect
25of the person, the person’s estate has been sequestrated or the
person has made an arrangement with or granted a trust
deed for creditors.

(8) During any period when the office of Government Actuary is vacant
the Deputy Government Actuary is to be a member of the panel and
30is to chair it.

(9) A person is “ineligible for membership” of an expert panel if the
person is—

(a) a Minister of the Crown, or

(b) a person serving in a government department in
35employment in respect of which remuneration is payable out
of money provided by Parliament.

(10) In this paragraph “appointed member” means a person appointed by
the Lord Chancellor to be a member of an expert panel.

Proceedings, powers and funding of an expert panel

7 (1) 40The quorum of an expert panel is four members, one of whom must
be the Government Actuary (or the Deputy Government Actuary
when the office of Government Actuary is vacant).

(2) In the event of a tied vote on any decision, the person chairing the
panel is to have a second casting vote.

(3) 45The panel may—

(a) invite other persons to attend, or to attend and speak at, any
meeting of the panel;

(b) when exercising any function, take into account information
submitted by, or obtained from, any other person (whether or
5not the production of the information has been
commissioned by the panel).

(4) The Lord Chancellor must make arrangements for an expert panel to
be provided with the resources which the Lord Chancellor considers
to be appropriate for the panel to exercise its functions.

(5) 10The Government Actuary’s Department, or any other government
department, may enter into arrangements made by the Lord
Chancellor under sub-paragraph (4).

(6) The Lord Chancellor must make arrangements for the appointed
members of an expert panel to be paid any remuneration and
15expenses which the Lord Chancellor considers to be appropriate.

Application of this Schedule where there are several rates of return

8 (1) This paragraph applies if two or more rates of return are prescribed
under section A1.

(2) The requirements—

(a) 20under paragraph 1 for a review to be conducted, and

(b) under paragraph 2 or 3 relating to how a review is conducted,

apply separately in relation to each rate of return.

(3) As respects a review relating to a particular rate of return, a reference
in this Schedule to the last review conducted under a particular
25provision is to be read as a reference to the last review relating to that
rate of return.

Interpretation

9 (1) In this Schedule—

• “expert panel” means a panel established in accordance with
  30paragraph 6;

• “rate determination” has the meaning given by paragraph 4;

• “rate of return” means a rate of return for the purposes of
  section A1.

(2) A provision of this Schedule that refers to the rate of return being
35changed is to be read as also referring to—

(a) the existing rate of return being replaced with no rate;

(b) a rate of return being introduced where there is no existing
rate;

(c) the existing rate of return for a particular class of case being
40replaced with no rate;

(d) a rate of return being introduced for a particular class of case
for which there is no existing rate.

(3) A provision of this Schedule that refers to the rate of return being
kept unchanged is to be read as also referring to—

(a) the position that there is no rate of return being kept
unchanged;

(b) the position that there is no rate of return for a particular class
of case being kept unchanged.

(4) 5A provision of this Schedule that refers to a review of the rate of
return is to be read as also referring to—

(a) a review of the position that no rate of return is prescribed;

(b) a review of the position that no rate of return is prescribed for
a particular class of case.””

(3) 10Any order made by the Lord Chancellor under section 1(1) of the Damages Act
1996 which relates to England and Wales and is in force immediately before the
time when subsection (1) comes into force is to be treated after that time as if
made by the Lord Chancellor under section A1(1) of that Act.

(4) In consequence of the amendments made by subsections (1) and (2), the
15Damages Act 1996 is amended as follows—

(a) section 1 is omitted;

(b) in section 2(4)(a), for “the Schedule” substitute “Schedule 1”;

(c) in section 2(7)(b), for “the Schedule” substitute “Schedule 1”;

(d) in section 6(9), for “The Schedule” substitute “Schedule 1”;

(e) 20the existing Schedule becomes Schedule 1 (and, accordingly, for the
heading “Schedule” substitute the heading “Schedule 1”).

Part 3 Miscellaneous and general

11 Report on effect of Parts 1 and 2

(1) 25Regulations made by the Treasury may require an insurer to provide
information to the FCA about the effect of Parts 1 and 2 of this Act on
individuals who hold policies of insurance with the insurer.

(2) The regulations may provide that an insurer is required to provide information
only if it has issued third party personal injury policies of insurance on or after
301 April 2020 to individuals domiciled in England and Wales.

(3) The regulations may—

(a) specify the information or descriptions of information to be provided;

(b) specify how information is to be provided;

(c) specify when information is to be provided;

(d) 35require that information or specified descriptions of information be
audited by a qualified auditor before being provided;

(e) make provision about the audit;

(f) require that details of the auditor be provided to the FCA.

(4) Regulations under subsection (3)(a) may in particular require an insurer to
40provide information, by reference to each of the report years, about—

(a) the amount paid by the insurer during the report period under its
relevant third party personal injury policies of insurance in respect of
personal injuries sustained by third parties, where the amount of
damages for the injury is governed by the law of England and Wales;

(b) the amount that the insurer might reasonably have been expected to
pay in respect of those injuries if this Act had not been passed;

(c) the mean of the amounts paid during the report period under those
policies in respect of those injuries;

(d) 5what might reasonably have been expected to be the mean of the
amounts paid in respect of those injuries if this Act had not been
passed;

(e) the amounts described in paragraphs (a) to (d), determined by
reference only to cases where—

(i) 10the amount paid by an insurer under a policy, or

(ii) the amount that an insurer might reasonably have been
expected to pay under a policy,

falls within one of the bands specified in the regulations;

(f) the amount charged by the insurer by way of premiums for relevant
15third party personal injury policies of insurance where the cover starts
in the report period;

(g) the amount that the insurer might reasonably have been expected to
charge by way of premiums for those policies if this Act had not been
passed;

(h) 20the mean of the premiums charged for those policies;

(i) what might reasonably have been expected to be the mean of the
premiums charged for those policies if this Act had not been passed;

(j) the amounts described in paragraphs (f) to (i), determined as if the
references to a premium charged for a relevant third party personal
25injury policy of insurance were references to so much of the premium
as is charged in order to cover the risk of causing a third party to sustain
personal injury;

(k) if any reduction in the amounts referred to in paragraph (a) has been
used to confer benefits other than reduced premiums on individuals,
30information about those benefits.

(5) The regulations may make provision about the methods to be used in
determining the amounts described in subsection (4)(b), (d), (g) and (i),
including provision about factors to be taken into account.

(6) The regulations may provide for exceptions, including but not limited to—

(a) 35exceptions relating to policies of insurance obtained wholly or partly
for purposes relating to a business, trade or profession;

(b) exceptions relating to policies of insurance of a specified description,

(c) exceptions for cases where the value or number of policies of insurance
issued by an insurer is below a level specified by or determined in
40accordance with the regulations, and

(d) exceptions relating to insurers who, during the report period, issue
policies of insurance only within a period that does not exceed a
specified duration.

(7) Before the end of a period of one year beginning with 1 April 2024, the Treasury
45must prepare and lay before Parliament a report that—

(a) summarises the information provided about the effect of Parts 1 and 2
of this Act, and

(b) gives a view on whether and how individuals who are policy holders
have benefited from any reductions in costs for insurers.

(8) If insurers provide additional information to the FCA about the effect of Parts
1 and 2 of this Act, the report may relate also to that information.

(9) The FCA must assist the Treasury in the preparation of the report.

(10) In the Financial Services and Markets Act 2000—

(a) 5in section 1A (functions of the Financial Conduct Authority), in
subsection (6), after paragraph (cza) insert—

“(czb) the Civil Liability Act 2018,”;”

(b) in section 204A (meaning of “relevant requirement” and “appropriate
regulator”)—

(i) 10in subsection (2), after paragraph (a) insert—

“(aa) by regulations under section 11 of the Civil
Liability Act 2018,”;”

(ii) in subsection (6), after paragraph (a) insert—

“(aa) by regulations under section 11 of the Civil
15Liability Act 2018;”.”

(11) A statutory instrument containing regulations under this section is subject to
affirmative resolution procedure.

(12) In this section—