Tag Archives: Ministry of Justice

Whiplash Claims Clampdown Could Benefit Motorists

As many of you will be aware, the cost of car insurance has been rising in the last 12 months or so for a number of reasons. One of the factors that effects premiums for such cover is the amount that insurance companies pay out for claims made by people who have suffered personal injuries.

WhiplashWhilst the majority of such claims are no doubt perfectly legitimate, there are unfortunately some whiplash claims that are submitted by a number of motorists that are either fraudulent or inflated. Unfortunately, the honest motorist suffers financially as a result of such claims by paying higher motor insurance premiums.

It is interesting that there has been a drop in the number of road traffic accidents yet, rather surprisingly, there has been a 50% increase in the number of whiplash claims being received by insurers here in the UK in comparison to 10 years ago.

Well, the Ministry of Justice has produced a consultation paper in respect of whiplash claims and it is hoped that, should the suggestions put forward be implemented, it could save the insurance industry in the region of £1 billion. Insurance companies have agreed to pass on any savings to its motor insurance policyholders. As a result, motorists could see their premiums reducing by in the region of £40 per annum.2fb38cdd00000578-3380021-image-a-3_1451559066430

Some of the measures proposed include increasing the current £1,000 personal injury claims limit to £5,000 that can be dealt with in the small claims court, putting a ceiling of £425 on how much someone can claim for a minor whiplash injury which is considerably less than the £1,850 that is being paid out on average for such claims at the present time and medical evidence would have to be provided to prove the injury before a compensation payment is made.

The consultation process is to be in place until the 6th January 2017. We are sure that you will agree that anything that can be done to lower the cost of motor insurance is to be welcomed.