UK drivers of saving 35 after new curbs on whiplash claims
Car premiums are going to fall by 35 annually right after the government announced measures to curb the top quantity of whiplash claims that currently cost UK drivers over 1bn 12 months.
The justice secretary, David Gauke, unveiled plans to introduce the civil liability bill in the House of Lords, that will set out changes towards the method in which whiplash claims are calculated and paid.
Road traffic accident-related injury claims are 50% over a decade ago, inspite of the fall in the number of reported accidents and the fact great britain has a number of the safest roads in Europe, he explained.
Part on this rise has become fuelled by a “predatory” claims industry that has encouraged exaggerated and fraudulent claims, driving within the costs of premiums for ordinary motorists.
David Gauke said: “We are putting this all over this important legislation, ensuring whiplash claims will no longer be a hassle-free payday. Niche will aim to set fixed degrees of compensation for whiplash claims plus the halt the era of the settling whiplash claims without medical evidence.”
Ministers also have proposed changes to your way an individual can injury payouts are calculated following serious injuries C the so-called Ogden rate.
Insurers have long-campaigned for reforms of this type also in return have pledged to pass about the savings in whole.
Huw Evans, who runs the Association of British Insurers (ABI), warned people and businesses were paying more regarding their car insurance policy than ever before.
“We need changes for the law to tackle a lot of the root causes. Soft tissue injury claims have been rising every year since 2014 as cold-calling claims firms have thrived, driving increase the value of insurance. This bill guarantees folks England receive fair compensation while reducing excess costs during the system,” he was quoted saying.
In January, the ABI said average premiums were 481, up 9% over the previous year. The youngest and oldest drivers have witnessed the most important increases.
Rob Townend, of Aviva UK General Insurance, welcomed the check and said the reforms were “badly required to cut cost pressures on drivers”.
“Together when using the financial guidance and claims bill, these measures signal no more the era of crash for cash and nuisance enquiries. One more time our resolve for pass around 100% of your savings to your customers.”
He claimed britain’s compensation culture was costing honest motorists 5m on a daily basis.
Comparethemarket.com said the reform will be welcome news to Britain’s cash-strapped drivers, whose average premiums rose by 70 between February and November this past year.
The bill has several years to arrive at parliament. In November 2016 the Secretary of state for Justice proposed reforming the sector. At that time it proposed scrapping the right to compensation for minor whiplash injuries, or simply a cap around the amount people could claim.
It suggested capping compensation would observe the average payout cut from 1,850 to the more 425, using this money only compensated wherein a medical report was provided as proof injury.
