The MP chairing the House of Commons transport select committee has announced that an inquiry will be launched later in the year into the high level of whiplash claims pursued in the UK every year.
Louise Ellman, MP for Liverpool Riverside was speaking at the motor insurance conference held by the Association of British Insurers. The aim of the inquiry is to find ways to reduce the number dishonest whiplash claims which cause congestion in the small claims courts and contribute to high insurance premiums for road users. However, Ms Ellman added that it was crucial that interests of genuine whiplash victims were not damaged.
The announcement of the inquiry comes at a time when the personal injury sector is already set to change dramatically. Below are list of some of the reforms that the government is planning on introducing in the coming months:
• The loss of legal aid for some cases as a result of the Legal Aid, Sentencing and Punishment of Offenders Act
• A 58% cut in fixed recoverable costs for cases of low value from the start of April
• Raising the small claims limit for your injury claim from £1000 to £5000
Questions have been asked of the insurance industry as to why whiplash claims have not been more closely scrutinised and why premiums have remained so high. Indeed, John O’Roarke who is the MD of LV+ has stressed that a reduction in fixed costs is only likely to lead to a 3% fall in insurance premiums. Mr O’Roarke claimed that premiums have already fallen by 12% meaning that it will be difficult to find further savings, however consumers have not necessarily felt these price decreases.
It is believed that insurance premiums could fall y 15% if dishonest whiplash claims could be prevented. Indeed, claims which are false or exaggerated account for 50% of all whiplash claims.
Don’t delay making your personal injury claim for whiplash – call our specialists today
Whiplash can cause serious pain and lead to time off work and lost earnings. As a result, it is crucial that you claim injury compensation for whiplash injuries and our specialists can help you win the damages you deserve. Act quickly though – strict time limits apply to whiplash injury claims.
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