Rising premiums linked to whiplash claims

MCE Insurance

Whiplash victims came under fire in a recent report from the Transport Select Committee stating that whiplash claims need to be tightened. The committee have suggested raising the bar of these types of claims by recommending primary legislation in order to curb the trend of whiplash claims. Currently claimants must prove their injury by medical reports through a qualified doctor.

Whiplash claims cannot be held fully responsible for the rising cost of insurance. Even the Transport Select Committee have concluded that there are many factors affecting the cost of motor insurance and tackling some in isolation would not be guaranteed to bring premiums down. It has been reported that there have been approx 554,000 whiplash claims in 2010-11, costing the insurance industry £2 billion a year.

David Cameron has pledged that more should be done to cut these types of claims and that Britain is becoming 'the whiplash capital of Europe'. It has been suggested that claims should only be made after a 10km/h (6.25mph) threshold, similar to that of Germany.

In order to support insurers the government has called a meeting in Downing Street with top insurers to tackle the spiralling premiums.

15.02.2012 - Traci Mclean

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