Recent Figures Claim Insurers Don’t Pass on Savings

The government recently announced a clampdown on whiplash compensation claims. Insurers consistently lobbied the government for years that too many claims for whiplash had been fraudulent. Yet something here is not correct > Read on.claim for ice on road compensation

The Ministry of Justice announced tough new action thinking it can target the so-called ‘whiplash culture’.

The Association of British Insurers’ own website contains figures that show personal motor claims fell each year since 2010. Yet the cost of motorist insurance premiums rose each year from 2013. So, what’s going on? There is no whiplash compensation culture, it’s a lie.

The Independent newspaper recently wrote an excellent piece about this quite frankly absurd situation. They found a quote from the Office of Fair Trading referring to the motor insurance industry as “Dysfunctional and costly”.

George Osbourne previously drew up plans to scrap compensating victims of ‘low value’ car crashes completely. MP Liz Truss at the Ministry of Justice is taking those initial plans further. Her Ministry plans to end the right for cash compensation for minor injuries such as whiplash, simultaneously increasing the upper limit for small claims cases to £5000.

If you are an innocent motorist that gets hit in a collision that is not your fault and have a perfectly legitimate reason for making a claim, in the future you may find it almost impossible to claim. Why? Because the insurers do not trust you. It is absurd when rail passengers find it easier to claim compensation for a delay than a motorist claiming for an accident that directly affects health. The government announced that it will make it far easier for passenger to claim for delays and cancellations despite C2C and Virgin introducing automatic payment for delays anyway. This is done in Italy, and has been for years.

The UK sometimes is very backward in its customer services culture.

In conclusion, the insurers argue that lawyers and solicitors continually lobby the government to make changes in their favour. The industry also argues that whiplash compensation is out of control despite the official figures clearly showing a contrary reality. In a nutshell, no one is obliged to use their insurance company to make a claim. Your insurer makes sure you get the smallest amount when you claim for damages.

Lawyers and solicitors are not in conspiracy and are not misleading – after all they are not the ones increasing car insurance premiums for investors and shareholders year on year.