Transport Select Committee’s findings on whiplash claims

The Committee has released its first report  highlighting that there has been a 70% rise in motor insurance claims over the last 6 years despite there being a 20% drop in the number of injuries alleged to have been caused.  These two figures are being used to illustrate and support the insurance industry's claims of increases in compensation claims.  In fact it has been alleged that whiplash claims accounted for over 70% of all personal injury claims.

This has led for calls for a revamp in how evidence is presented for such whiplash claims and the insurance industry would like further evidence from potential claimants as to how they have been injured and to the effects that the injury has had on their lives before they receive compensation.

This adds further fuel to the fire that such claims are increasing the average road user's insurance premium.  The AA has revealed that average insurance prices for car insurance rose by 15% over the last year averaging out at £971.00. 

To add some balance to all of this the Transport Select Committee also raised concerns about the paying of referral fees and it is pressurising the Government to ban the payments of such fees between solicitors and claims management firms who buy such cases from the insurance companies themselves.  The Committee would however like a wider ban to stop insurance companies receiving fees  from other parties such as car hire firms and garages.

It is good to see that MPs have acknowledged that the insurance industry greatly profits from personal injury claims whilst it also, on the other hand, continues to attack personal injury solicitors and their clients.  It is the hypocrisy of such an approach that causes concern.