New rules announced by Government to crackdown on fraudulent whiplash claims
New rules have been announced by the UK Government which will save motorists £35 a year on car insurance.
The Government is clamping down by putting a ban in place on claims which aren’t supported by medical evidence and will also be placing a cap on insurance payouts.
The new rules will hopefully restrict the rising costs of car insurance in the UK by cracking down on motorists who fraudulently claim for whiplash.
Yesterday, the Queen said during the parliamentary opening speech: “Legislation will be introduced to modernise the court system and to help reduce motor insurance premiums.”
Motorists in Britain will save on average around £35 a year thanks to the new Civil Liability Bill, which will see a ban put in place stopping drivers from making claims without medical evidence to back up their claim. A fixed compensation tariff for whiplash injuries will also be introduced for a period of up to two years.
Drivers making a claim for whiplash related injuries following a car accident have risen by 50% over the last 10 years, causing premiums to leap on average around £110 in just one year (2016).
The Bill was discussed last November, with the Government proposing to “reduce the unacceptably high number of whiplash claims and allow insurers to cut premiums” – a compensation cap of £425 was proposed during the consultation, with the current average payout standing at £1,850.
During the consultation, plans were set out to raise the compensation limit in the Small Claims Court for any personal injury claims from the current £1,000 to £5,000 but no decision has been made as to whether this will be included in the Bill.
The former Justice Secretary, Liz Truss, says that for too long now many drivers have exploited a growing compensation culture, with some motorists seeing whiplash claims as an easy way to cash in, pushing up costs for millions of law-abiding road users in the UK.
She added: “These reforms will crack down on minor, exaggerated and fraudulent claims. Insurers have promised to put the cash saved back in the pockets of the country’s drivers.”
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