Mobile Doctors Group Plc : David Cameron Commits To Slashing Whiplash Claims

David Cameron Commits To Slashing Whiplash Claims

Date: Friday, February 17th, 2012

Prime Minister David Cameron has resolved to reduce the costs of car insurance premiums, calling on all UK residents to take an active part in the fight against whiplash claims during a meeting with industry representatives at Downing Street.

According to insurers the industry spends £2bn each year on whiplash claims, as motorists now claim for injuries resulting from even the most harmless traffic accidents, adding £90 to the average annual premium.

Cameron's meeting with insurers follows a recommendation made by the Transport Select Committee in January, urging the government to take measures, including legislation, to reduce the number of whiplash claims, which have soared by 70% over the past six years.

Although the Prime Minister admitted that the problem would hardly be resolved in an instant, the government is committed to tackling the issue and hopes that people will change their view on compensation, by not making false claims and accepting their personal responsibility.

The government has already taken the decision to ban referral fees, which include details about a personal injury being shared among insurers, solicitors and claims management firms, who pay each other for delivering the information.  This particular ban however, does present practical difficulties for the MoJ in itself as Matthew Game, CEO of Mobile Doctors asserts: 

"This ban will either force many small law firms who currently pay referral fees to go out of business or join networks to pay for joint advertising in order to keep their businesses on the map and make sure personal injury victims are made aware of their services that are available to them."

The Association of British Insurers has welcomed the government's commitment to deal with compensation culture. It insists that a notion of minimum speed should be introduced and claims for injuries sustained from accidents below this speed should not be paid out.