Government targets 'whiplash fraudsters'Bogus claims tackled to drive car premiums down

23 October 2013

The Government has pledged to reduce fraudulent car insurance claims as part of a package of measures designed to help with the costs of running a car. 

Under new plans, announced today, only evidence from accredited professionals will be acceptable to support a whiplash claim - making it more difficult for exaggerated or false claims to be successful. 

The Government will set up independent medical panels and a new scheme for accrediting medical experts.

Reforms to combat insurance fraud

Justice Secretary Chris Grayling announced the new plans will take effect next year, as part of a package of measures designed to help with the costs of running a car. 

It follows in the wake of several reforms to combat insurance fraud and "compensation culture", including the banning of referral fees paid between lawyers, insurers and garages, and restructuring of some of the ways lawyers can charge for minor injury claims.

£2 billion compensation bill for whiplash injuries

According to the Association of British Insurers, the car insurance industry paid out more than £2 billion last year in compensation for whiplash injuries - and as a result drivers paid £90 extra, on average, in their premiums. 

Insurers claim that fraud is one of the key causes of the staggering premium increases seen over recent years - which went up by 40% between 2010 and 2011.

Are premiums falling?

However, AA Premium Index figures have recently suggested a reversal in the upwards trend. It has reported a fall of 12.4% in the typical premium since last October. This is the biggest annual decrease since they began tracking premiums in 1994.  

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