As the number of whiplash personal injury claims keeps increasing, the Government is looking for ways and means to bring down the mounting car insurance costs. A special summit consisting of an assortment of Cabinet ministers is set to be tabled soon.
The summit will consist of Transport secretary Justine Greening, Business Secretary Vince Cable, Health Secretary Andrew Lansley, Home Secretary Theresa May and Justice Secretary Ken Clarke.
According to the Transport Select Committee, the UK has much higher rates of whiplash claims as compared to the rest of Europe.
Ms. Greening addressed the situation while writing for the Mail on Sunday.
“There is no getting away from it; the cost of car insurance is bearing increasingly little relationship to the real world where motorists act more responsibly than ever and accidents really do happen less often.”
“With this in mind, it would be reasonable to expect premiums to come down or at least hold steady. But the cost of cover continues on a relentless climb. Sadly, Britain is now the whiplash capital of Europe, with more than 1,500 claims a day,” she continued.
It is believed by most in the Cabinet that whiplash claims, such as the ones plaguing the UK now, are the main reason for the disappearance of cheap car insurance premiums from the scene.
Ms. Greening continues, “From texting and cold-calling drivers involved in accidents, to running high profile advertising campaigns, lawyers are encouraging people to claim for whiplash injuries sustained in the most minor of incidents – which barely damage the car’s paintwork, never mind its driver.”
“As Transport Secretary, I believe it’s time to confront these issues and I’m determined to take a serious look at what can be done.”
“Premiums are not simply the price of an insurance policy, they are a contract of mutual responsibility and insurers must live up to their side of the bargain. It is time for them to get a grip and put their houses in order,” she said
The link between referral fees and insurance premiums in personal injury cases is now clear to Ms. Greening. However, she also mentioned that insurers still had a part to play.
“Premiums are not simply the price of an insurance policy, they are a contract of mutual responsibility and insurers must live up to their side of the bargain,” she finished.
With Britain facing more than 1,500 claims per day, the situation has taken a dire turn, with honest policyholders’ money hanging in the balance, the Government is expected to come up with firm measures to set things right.
According to Nick Starling who works at the Association of British Insurers as director of general insurance, “The Government must now push ahead with its reforms to civil litigation to tackle high costs and fraud.”