Are Honest People Claiming Whiplash Suffering Through Fake Whiplash Claims?
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Are Honest People Claiming Whiplash Suffering Through Fake Whiplash Claims?
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In recent years even the most careful UK drivers with a no claims bonus have seen their motor insurance premiums continue to increase. Leading motoring organisations blame these hikes in car insurance prices on fraudulent insurance claims, taxes and legal fees. Essentially, the insurance industry is paying out more than it’s getting in, and its careful motorists who seem to be paying the price.
The average insurance premium increase is around 200 pounds this year, and with the cost of driving increasing, it can only add to the financial pressures on the British motorist. With people now driving less or abandoning the car altogether due to these costs, motoring groups are now calling for legislative action by the government to prevent the causes of these insurance hikes. A change in the law does seem the best way to combat fraudulent or unreasonable claims, especially for whiplash, which has caused much controversy. Many motor insurance industry observers are concerned that for too long accident compensation claims have been an easy target for fraudsters or drivers who are deliberately looking for a way to make money by using the law to their advantage.
However, uninsured drivers are also being blamed for the rising cost of motor insurance. The cost per year per uninsured driver is 30 pounds, through collisions, failing to adhere to road traffic rules, and other criminal activity.
Calls for tighter regulation of personal injury law firms
Now the Motor Insurers’ Bureau is calling for a change in the law to stop the proliferation of unreasonable personal injury claims. There is concern that a proportion of whiplash claims are either fraudulent or at least questionable. The pressure is building on the government as more and more drivers are realising the cause of the increase in their car insurance premiums, and making a change in the law is popular in government circles as it will be a popular move with the voting public.
But although it may represent a short-term rise in popularity, some industry watchers are concerned that it could make life even more difficult for genuine claimants and not, as the government says, streamline the process in favour of the genuine claimant. In addition, the only real beneficiaries are likely to be the insurance companies as they do not have a history of passing on savings to motorists. In reality if they do manage to save any compensation payments they are simply likely to pocket the difference in increased profits.
There is much concern amongst driving organisations that personal injury claims firms have been allowed to proliferate in the UK, leading to huge amounts of money being paid out by insurance companies to undeserving claimants while ordinary and law abiding drivers have had to pick up the costs. Some financial ratings agencies have found that the industry as a whole is paying out far more than it can collect in premiums.
What next for personal injury law?
With the AA reporting the largest rise last year in insurance premiums since their records started in 1994, the House of Commons recently held an inquiry into the car insurance market. The inquiry found that significant changes to the way in which personal injury firms work are needed to stop the huge increases in UK car insurance.
The inquiry heard that the ‘hard sell’ approach to personal injury claims has been one of the main factors in the rise of claims for whiplash, where there can be encouragement to claim even if the ‘victim’ has not suffered an injury. However, as with all media stories you have to read through the hype to realise that in reality there are very few fraudulent claims. The majority of whiplash claims are made by honest victims who have suffered through no fault of their own. They should not be made to suffer for the sake of a few dishonest claimants and the profits of the insurance industry.
Essentially when an insurer pays out for a fraudulent personal injury claim, it is the public who pays for it rather than them, and it seems the best way to stop this is simply to clamp down on those that are making fraudulent claims. Any changes in the law have to be made in such a way that genuine claimants are not penalised alongside the fraudsters. Achieving that may be more of a challenge than the government realises.
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