Whiplash Claims system in need of overhaul
Whiplash claims have been a constant problem for insurers and customers for many years now. With complicated claims and expensive turnarounds, premiums have been kept high because of it. Aviva, the UK's biggest insurance company, believes that if a new process was set up to handle these claims motorist's premiums could drop by an average of £60 a year.
The new idea put forward by Aviva would force victims to put their claims directly to the insurer of the driver who caused the crash. They suggest that this would cut out the middlemen who inflate the cost of claims.
Whiplash Claims alone are one of the sole reasons for the huge rise in the price of motor cover. 80% of all injury claims made are for whiplash and nearly all of them go through lawyers that take huge fees.
Aviva say that after an accident, the victim should receive independent clinical advice, get in contact with the accused drivers insurance company, which would then refer to a standard tariff of damages chart which is focused on care, rather than cash payments. This would stop all the spiralling legal costs and bring motorists premiums down across the board.
Dominic Clayden, claims director at Aviva said, "Our primary concerns are that injured parties receive care and compensation as quickly as possible, and that all motorists benefit from a reduction in the excessive costs that have built up in claims over the past few years."
So all this sounds quite positive however one legal group said a change would leave victims vulnerable. The Association of Personal Injury Lawyers said, "Putting the injured person entirely in the hands of the guilty party's insurer would create a profound conflict of interest."
Either way the government is looking into the system and will make changes as it sees fit.
Quotes taken from BBC News
27.02.13 - MCE Insurance