April 27, 2015

Injury Claim Premiums Rising; Government Still At Work

Category: Politics — Tags: , , , – admin @ 6:38 am

Despite the falling number of car accidents and road-related injuries in the past few years, personal injury claims are still rising. The costs of insurance premiums have risen because of exaggerated and fraudulent claims. About 8 in 10 drivers are making injury claims for injuries. Because the injury is self-reported and requires no medical evidence, the insurance industry is actually losing more than £2 billion yearly for a typical insurance policy.

Prime Minister David Cameron has met with several insurers and stakeholders of the industry and have announced government support and help in bringing down the rising premiums of the market. The new measures might include tackling questionable medical evidence and challenging insurance companies to challenge seemingly-fraudulent cases.

The members of Parliament have reported that a 70% rise in motor injury claims in the past six years while having a drop of 23% in car accidents is not proportional and there is “something wrong” with the insurance system that is leading to inflated premiums and losses.

The government plans to ban referral fees that insurance companies, lawyers and claims management companies charge each other for passing the information around. The £1200 lawyer’s fee for small value personal injury claims would also be reduced.

The group of insurers are proposing that UK be under a similar measure from Germany, where a car traveling at 10km/h is the threshold for a valid injury compensation claim, two medical check-ups will be required and having a pool of individual experts who can examine the claims and give recommendations.