News

Government targets whiplash fraud

  • Plans to cut fraudulent claims
  • Claims add 90 to insurance premiums
  • New medical panels to be set up

Words By

John McIlroy

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Fraudulent whiplash claims are to be targeted by a Government initiative, in an attempt to help cut insurance premiums.

Recent studies have shown that around 1500 whiplash claims are made in the UK every day, costing insurance companies an estimated 2bn.

Insurance providers claim that whiplash compensation adds around 90 to every insurance policy.

Government figures reveal that there has been a 60% increase in personal injury claims based on road accidents since 2006 - while the number of reported accidents has plummeted by 20% during the same period.

Justice Secretary Chris Grayling says the new proposals would make it easier for insurance companies to challenge claims made following traffic accidents. Independent medical panels would determine the validity of cases, while it would also become easier for cases to be questioned in the small claims court.

Grayling said: 'For too long, honest drivers have been bearing the price of a system that has been open to abuse and it is time for that to change.'

By John McIlroy