Drivers with motorhome insurance may find it more difficult to claim for compensation from whiplash injuries in the future as a House of Commons committee report suggests pay outs from neck injuries are to blame for the rising cost of motor insurance.
The House of Commons Select Committee for Transport (HCSCT) were damning in their criticism of lawyers and fraudsters who exploit whiplash injuries and said that without doubt they were the main cause of soaring insurance premiums for motorists of all kinds. 7 out of 10 motor insurance settlements come via claims for whiplash injuries and at a time when road accidents injuries have fallen by a third, the claims for road accident injuries have doubled!
Louise Ellman, chair of the HCSCT, was in no doubt that insurance firms have to tackle the whole process of how premiums are calculated but was strident in her view that whiplash claims should be tackled first, she said “If the number of whiplash claims does not fall significantly as a result there would, in our view, be a strong case to consider primary legislation to require objective evidence of a whiplash injury, or of the injury having a significant effect on the claimant’s life, before compensation was paid.”
She then turned her attention to the insurance industry saying: “Insurers, solicitors and claims management companies have themselves driven up the cost of motor premiums by encouraging people caught up in road accidents they did not cause to claim for personal injury, car hire and other legal costs.”
The report was critical of most aspects of the industry that has grown around road accidents and also pinpointed referral fees paid to solicitors for passing on personal details of claimants as another area to be dealt with.