The Association of British Insurers (ABI) has appealed against the Court of Appeal’s decision to increase general damages.
Three senior judges ruled in July that a 10% uplift to be applied to all personal injury awards from April 2013 applies also to cases launched before that date.
Insurers are concerned that the decision offers a double costs advantage for claimants. The ABI has now submitted papers to the High Court calling for the judgment to be reviewed.
A spokesman for the ABI said: ‘At the moment this upsets the balance that was intended by the Legal Aid, Sentencing and Punishment of Offenders Act. We have always known about the 10% uplift, but it was supposed to be balanced by a reduction in legal costs.’
The decision to increase general damages was made by the lord chief justice, master of the rolls and vice-president of the Court of Appeal.
In their judgment, they said it would be a ‘breach of faith’ for the judiciary not to ensure that trial judges would apply it.
The uplift will apply to general damages for pain, suffering and loss of amenity in personal injury, nuisance, defamation and all other torts which cause suffering, inconvenience or distress to individuals.