Ministers promise to fight against dubious claims of whiplash
MINISTERS yesterday urged motor insurers to lower the cost of car insurance, while promising to fight against spurious whiplash claims that have pushed up the cost of premiums.
Transport secretary Justine Greening chaired a Whitehall meeting that looked at ways of tackling a “compensation culture” that has pushed the number of claims up by 70 per cent in the last five years – even though the number of recorded accidents fell by a quarter.
Around 1,500 whiplash claims are made every day in Britain, something the insurance industry says cost them £2bn last year – equivalent to £90 on every premium.
Insurance companies claim it is difficult to dispute whiplash claims and one plan involves independent panels of doctors who will assess the extent of injuries.
Other measures discussed at the summit include a ban on claims from drivers travelling at under 10mph, a ban on referral fees paid by lawyers on personal injury cases and potential methods of encouraging insurers to dispute claims rather than settle out-of-court.
Following the summit Greening said: “There is no one silver bullet to tackling fraudulent whiplash claims or reducing young driver premiums but we have already taken decisive action by banning referral fees, reforming no-win no-fee rules and cracking down on fraud.”
“We will also work with industry to take full advantage of the use of telematics, or in-car black boxes, to give young people a greater choice of options if they want to drive.”