Crackdown on fake whiplash claims welcomed by insurance industry

Crackdown on fake whiplash claims welcomed by insurance industry

The Association of British Insurers (ABI) has welcomed a planned crackdown on fraudulent whiplash claims after road traffic incidents.

The Association of British Insurers (ABI) has welcomed a planned crackdown on fraudulent whiplash claims after road traffic incidents.

A new Civil Liability Bill announced in the Queen's Speech on Wednesday aims to address the 'compensation culture' around motor insurance claims and is expected to reduce premiums by about £35 per year.

Amongst other things, the Bill will ban offers to settle claims without the support of medical evidence and introduce a new fixed tariff of compensation for whiplash injuries lasting up to two years, the Law Society Gazette reported.

At the same time, it aims to ensure a fair, transparent and proportionate system of compensation for damages paid to genuinely injured personal injury claimants.

The Government also confirmed plans for tighter regulations in the claims management sector to help protect consumers from "nuisance calls and the encouragement of fraudulent claims". The oversight of claims management companies will be transferred to the Financial Conduct Authority, which will have the power to cap fees.

James Dalton, director of general insurance policy at the ABI, said: "Millions of motorists will welcome the Government's commitment to further tackle the compensation culture that is contributing to rising motor insurance premiums. We have been pushing for further reforms to ensure proportionate compensation for lower-value whiplash claims, and it will be important to strike the right balance between the interests of claimants and those of premium paying motorists."

Dalton also welcomed the tougher regulation of claims management companies, which he said "cannot come soon enough for people who are plagued by unsolicited calls and texts".

"Disreputable firms are fuelling a compensation culture that contributes to higher insurance costs for many," he added.


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Posted 22 June 2017 by Ellie Priestley

Tags: Accident, Car, Driving, Whiplash

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