"The insurance industry has repeatedly stated that savings will be passed onto motorists by way of reduced premiums but to date has failed to deliver.
Contrary to what they state, the number of whiplash claims has fallen over the last few years. Further, since the system was reformed in 2010 by the introduction of the Claims Portal, the cost of claims has fallen significantly. The total paid out in 2010 was £8.3bn and in 2015 £5.8bn, a 30% reduction. However, despite their promises none of these savings have been passed onto the motorist and in fact premiums have increased.
Research has shown that there is no “compensation culture” and yet the insurance industry bandy the phrase about in an effort to gain sympathy.
Insurance is paid by every motorist in order to compensate those that are injured through no fault of their own amongst other things. The proposed reforms seek to reduce compensation for “minor” injuries to a negligible figure which in no way acknowledges the pain and suffering that some injured people will endure.
For the insurance industry to attempt to sell this to the public by stating that they will save £40 a year is shameful but unfortunately a number of media including the BBC and The Guardian seem to have swallowed it”.
Millions of motorists could see their car insurance bills cut by £40 a year, the government says, after it announced a crackdown on the “epidemic” of exaggerated and fraudulent whiplash injury claims. The Ministry of Justice (MoJ) proposals would make obtaining a payout much tougher and, according to insurers, will end the UK’s status as the whiplash capital of the world. The proposals are intended to stamp out a “toxic” compensation culture that has pushed up motor premiums, led to consumers being bombarded with nuisance text messages and calls, and put additional pressure on the NHS. The MoJ has proposed either scrapping the right to compensation for minor whiplash injuries or putting a cap on the amount people can claim.