(ShareCast News) - Shares in NAHL Group were hit by the government's confirmation that it plans to clamp down on whiplash compensation and limit other small claims.The Ministry of Justice (MoJ) has begun a consultation over a proposal to restrict the ability for sufferers of minor whiplash injuries to claim compensation and to raise the upper limit for the small claims court for personal injury claims from £1,000 to £5,000.Banning insurance claims for whiplash could save motorists £40 a year on their premiums, the government said, with the BBC reporting that the government will propose capping compensation for minor injuries suffered in a car accident at 'just over £400'; and that ministers also want to introduce a 'transparent tariff system' for more significant injuries.NAHL, through its ownership of the National Accident Helpline personal injury division, which accounts for around 80% of NAHL's forecast profits for 2016, welcomed the "increased clarity" and said it believed the shape of the government's review appeared as it expected."The group has continued to plan for a range of potential outcomes and remains committed to providing high quality advice, support and access to justice for genuine claimants," NAHL said.It is predominantly focused away from lower value road-traffic accident claims, with around three quarters of its core enquiries relating to non-RTA outside the scope of the MoJ's soft injury changes.NAH is confident it generates the highest quality and variety of enquiries in the sector and is distinct from many rival operators that are more focused on RTAs and said it expects the new regulatory environment will provide the company "the opportunity to play a more pro-active role in the entire conduct and financing of a PI case in the medium to long term".However it has begun testing new commercial and structural arrangements on some of its enquiries, just in case.Broker Arden said if the small claims limit proposals are accepted, such claims will still be processed but without the legal opinion."This will be of value to the claims processing companies who will still require enquiries generation/outsourced marketing."NAH has a track record of being highly innovative around changes in regulation and we believe the changing landscape could also present an opportunity to capture more margin in-house." Shares in NAHL quickly fell on Thursday and were down 12% to 197p at lunchtime.