Government response to reducing Whiplash Claims
Following the recent call to investigate whiplash claims, the Government have posted their response to outlining the ways they wish to reduce the number and costs of whiplash claims alongside reducing the associated costs of motor insurance.
This report claims the UK is the “Whiplash capital of the world”, following this statement a range of recommendations were put forward to improve the situation.
Split into 4 parts, there was a call for better medical evidence, to further the action needed to challenge fraudulent claims, to extend the small claims track threshold and to increase data sharing of whiplash issues.
In particular, it was proposed that there is a termination of pre-medical offers being made by insurer. Alternatively it would involve a medical examination and report being completed the claim can proceed. Mainly acting as a deterrent, aimed to target those who make excessive or fraudulent claims.
Alongside this, it has been confirmed that Independent medical panels will be introduced, backed up by an accreditation scheme to create a more structured robust system and it would also assist in supporting true claims as it could be used as evidence.
Furthermore it is hoped that data sharing is encouraged with between insurers and claimants lawyers again to tackle the issue of fraudulent claims and begin to monitor potential clients before taking them on.
Figures published by the AA’s British Insurance Premium Index in October 2013 show that selected quoted premiums have fallen by more than 12% over the previous year, which the government put down to their recent legal reforms.
The government says it is determined to do more to reduce insurance premiums further to help with the cost of living. It is likely the new plans which the government will implement will have an effect on reducing the number and costs of whiplash claims. However what is still to be seen is whether the real winners will be the genuinely injured victims and consumers who are paying high motor insurance premiums or the large motor insurance sector.