Our headline reflects the mood in the legal industry here in Ireland, regarding the insurance industry’s antics at blaming everything but themselves for the crazy hike in car insurance premia.
It appears that their colleagues in the UK are doing the same, and having some success at convincing government.
The Ministry of Justice, on 17 November 2016, launched a consultation on proposals, which will reduce the unacceptably high number of whiplash claims and allow insurers to cut premiums. Insurers have pledged to pass on savings to drivers – worth a total of £1 billion.
The Ministry state that “Whiplash claims are 50% higher than a decade ago, despite the UK having some of the safest roads in Europe and a fall in the number of accidents. This has been fuelled by a predatory claims industry that encourages minor, exaggerated and fraudulent claims, driving up the costs of insurance premiums for ordinary motorists.”
The consultation paper outlines plans to scrap the right to compensation or put a cap on the amount people can claim for minor whiplash injuries. Capping compensation would see the average pay-out cut from £1,850 to a maximum amount of £425. Compensation would only be paid out if a medical report was provided as proof of injury.