Measures to tackle insurance fraudsters and dishonest claims have been promised by the Government, to reduce the amount being paid out unnecessarily by insurance companies. This covers bogus motor claims and ‘trips and slips’ at work and in public places. Courts will throw out compensation applications in full where the claimant has been in the Ministry of Justice’s words ‘fundamentally dishonest’. The Government plans to ban lawyers from encouraging people to make claims by offering them cash or other incentives. As for notorious whiplash claims , medical assessments will only be by independent accredited professionals. And the Government is introducing new rules this year to restrict the practice of settling whiplash claims without confirmation of the claimant’s injury. Justice Secretary Chris Grayling said: “We are making sure we do our bit to help drivers with the cost of running a car, and putting money back in their pockets. Insurance premiums have fallen by record amounts over the past year as we have turned the tide on the compensation culture but there is more to do. We are continuing to go after the fraudsters who force up costs for honest drivers.
“The new measures are the latest stage of the government’s delivery on the commitment to deal with high insurance costs made by the Prime Minister at an insurance summit in 2012. The latest Association of British Insurers average motor insurance premium tracker shows the average price of fully comprehensive insurance cover has reduced by 14 per cent over the last year.”
Roads Minister Robert Goodwill said: “The costs of owning and running a car are felt by millions of households and businesses across the country and this government is determined to help keep those costs down. Insurance premiums have fallen but we are keen to do more with the industry to drive down costs further.
Commenting
At the Association of British Insurers, Otto Thoresen, ABI Director General, said: “These changes are a very positive development for the vast majority of honest insurance customers who end up paying for the fraud of the minority. We applaud the decision to ban the distasteful advertising which offers cash or other inducements for personal injury claims. This only serves to reinforce to unscrupulous claimants that there is a compensation culture to exploit.”
However the ABI recently reported that the value of fraudulent insurance claims uncovered by insurers rose to a record £1.3 billion in 2013, up 18 per cent on the previous year. The Association of British Insurers drew on British Retail Consortium stats to suggest its figure is more than double the cost the UK’s shoplifting bill.
