MPs launch investigation into insurance whiplash claims

15 March 2013

Those incredibly exciting people at the Transport Committee are calling for evidence to see how much whiplash is costing us all. It has been reported that whiplash claims are adding around £90 to every motor premium, so what can be done to reduce that?

Basically, they want to find out how many whiplash claims are bogus and which costs are hiked-up as a result. This will invariably mean that claimants will have to undergo an independent medical examination, which is something insurers have been calling out for.

The Association of British Insurers (ABI) wants to see all whiplash claims seen by medical professionals in a bid to stem the flow of claims, after seeing whiplash cases rising by nearly a quarter in the past four years. The UK is already considered to be the 'whiplash capital of the world' and the figures that estimate 70% of road accident personal injury claims are for whiplash in the UK is indeed, much higher than Germany's 47%, Spain's 32% and France's frankly pointless 3%.

The Association of Personal Injury Lawyers (APIL) isn't convinced by all this, and said that this may put off people with genuine claims. "The real issue should be about getting the right level of compensation for genuinely injured people,” said APIL President Karl Tonks.

Louise Ellman, Transport Committee chair, said: "It is vitally important for policymakers to understand the reasons for the very high cost of motor insurance, especially for young drivers, and to take steps to bring that cost down. Whiplash claims undoubtedly play a part in driving up the cost of motor insurance, but access to justice for injured people must be preserved."

"We want to hear the arguments on these points and will publish a report in the summer about the best way forward on this difficult issue."

Either way, chances of your premiums going down in price remain at nil.

TOPICS:   Motoring   Insurance

9 comments

  • Captain C.
    This will be about as effective as the investigation into petrol price fixings; who else noticed that the price went up by 10p per litre in the week the committee closed their investigation and said they had found nothing wrong??
  • Strawbear
    "It is vitally important for policymakers to understand the reasons for the very high cost of motor insurance," The reasons being a load of greedy bastard shareholders.
  • Tim B.
    This is nothing more than a self-serving exercise. Whiplash is adding £90 per premium? OK, let's say we manage to get rid of the personal injury claims that pop up every time there's an accident. What will happen to that £90? I can guarantee it won't end up back in the customers pocket.
  • noshit
    Last Summer I saw a minor crash at a cross road. A car turning right and a car from the opposite going straight on. They had both stopped but then both moved to go on their way and the car turning right hit the side of the one going straight on. The speed must of been less than 10 miles an hour. The drivers got out and were having a debate over it, getting in and out of each others car, moving the cars off the road etc. The ambulance turns up and they put everyone in neck braces as if their heads were about to fall off.
  • Jamie e.
    Great. Investigate just as the Jackson reforms come in which will kill off the vast majority of these dubious PI claims. Cocks.
  • Craig
    Woman at work just received £2,400 whiplash claim for a car that scraped the plastic trim on the side of her car in a car park parking space "whiplash from when she tensed up". I don't know about "independent medical examination" but if they couldn't see this was a false claim, we're screwed. A bit of common sense would save millions of pounds.
  • Alexis
    "This will invariably mean that claimants will have to undergo an independent medical examination, which is something insurers have been calling out for." Which implies judges up and down the country have been accepting reports from Dr Nick Rivieras?
  • TBI C.
    Even if insurances were to reduce by £90 after weeding out fraudulent whiplash claims, I'm sure insurers will find another way to increase premiums.
  • MPs N.
    [...] whiplash claimsBBC NewsAA Insurance boss puzzled by timing of Transport Committee inquiryPost OnlineMPs launch investigation into insurance whiplash claimsBitterwalletFinancial Times -Bloomberg -Law on the Weball 25 news [...]

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