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Daily Insurance Industry News
Wednesday 22nd of March 2017
January 12, 2012

MPs demand tougher threshold for whiplash claims

by Gill Montia

Story link: MPs demand tougher threshold for whiplash claims

MPs have called on the insurance industry to abandon sharp practices in the management of car accident claims.

In addition, the cross party Transport Committee is calling on the Government to impose a higher threshold for the payment of any compensation in whiplash cases.

In a new report, the Committee warns that the spiralling cost of motor insurance is primarily the result of market dysfunction and, in particular, the escalation of uncontested claims for whiplash injury.

According to Transport Committee chair, Louise Ellman: “Insurers, solicitors and claims management companies have themselves driven up the cost of motor premiums by encouraging people caught up in road accidents they did not cause to claim for personal injury, car hire, and other legal costs.”

She adds: “The threshold for receiving compensation in whiplash cases should be raised and, if the number of such claims does not fall significantly, the Government should bring forward primary legislation to require objective evidence – both of a whiplash injury and of it having a significant effect on the claimant’s life – before compensation is paid.”

MPs have also questioned the effectiveness of the Government’s recent decision to ban referral fees relating to personal injury cases, particularly once rules restricting the ownership of law firms are relaxed.

 

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