Whiplash Claims Behind Rise In Car Insurance Premiums

Fri, 13 Jan 2012

An increase in claims for whiplash injury is largely to blame for the recent rise in the cost of motor insurance, according to a new report by MPs.

The report from the House of Commons Transport Committee said that the rise in personal injury claims, most of which were for whiplash injuries, was "the main reason for the rise in premiums".

It added that its "difficult to diagnose whiplash objectively and this has deterred insurers from defending claims in court".

MPs recommended that the Government should impose a higher threshold for the payment of any compensation in whiplash cases, and called on the insurance industry to abandon sharp practices in the management of car accident claims .

Louise Ellman, the committee's chairman, said: "Although we strongly support access to justice, drivers should not be railroaded by cold callers into launching legal action."

"The insurance industry must abandon sharp practices that push up premiums such as passing drivers' personal data to other parties or taking secretive referral fees from solicitors, garages and car hire firms."

Nick Starling, director of general insurance at the Association of British Insurers, said: "We are pleased the committee has recognised that spiralling personal injury claims are the real reason car insurance premiums have been increasing and made recommendations for meaningful reform."

"It is absolutely critical that Britain's whiplash epidemic is tackled once and for all and the committee's acknowledgement that the bar to receiving compensation for whiplash is too low is a step in the right direction."
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