Reduce the Number of Whiplash Claims

The British Insurance Brokers’ Association (BIBA) has called for the Government to commit to a timescale and announce details for its work to reduce the number and cost of fraudulent whiplash claims.

The call follows the announcement in the Government’s response to the Transport Select Committee’s follow up report on the cost of motor insurance, where they committed to urgently work with the insurance industry to identify and investigate appropriate ways to effectively reduce the number and cost of fraudulent whiplash claims.

Eric Galbraith, BIBA’s Chief Executive, said: “We broadly welcome the Government’s response and will continue to work closely with them. However we want them to speed up their work to reduce fraudulent whiplash claims and urge them to provide more details and timescales to move this forward.”

BIBA believes that fraudulent whiplash claims are the principal cause of the increasing cost of motor insurance with more than 571,000 reported claims annually, costing innocent policy holders £2billion per year.

Graeme Trudgill, BIBA’s Head of Corporate Affairs, added: “BIBA will continue to work closely with Government on all of the issues outlined in the report and in particular the access to DVLA driver records anti-fraud project. BIBA has been working hard to help consumers with motor premiums and we have recently launched the joint government agreement on signposting. This will help older drivers more easily access motor insurance.”

BIBA has published an eight point plan to reduce the cost of motor insurance

1. Implement many of Lord Justice Jackson’s recommendations and set out a timetable and actions to address fraudulent whiplash claims.

2. Provide the insurance industry access to DVLA driver licence records to reduce fraud.

3. Promote the system of signposting to help people access suitable insurance.

4. Review the implementation of the FSA’s guidelines for the selling of general insurance policies through price comparison websites, published six months ago.

5. Young driver risk and safety – Review the Pass Plus system, the driving test and take account of hazard perception, situational judgement and attitude awareness and develop the wider use of telematics technology

6. Reform theNorthern Irelandlegal system in regard to the handling of personal injury claims.

7. Greater regulation of claims management companies.

8. Greater promotion of the new system of Continuous Insurance Enforcement by Government to reduce the cost of uninsured driving.

All information was provided by BIBA and is available via their website www.biba.org.uk

For more information about this or any other insurance related matters please contact ECS Insurance Brokers Ltd on 0114 280 2830 or email enquiries@ecsbrokers.com

THE UK’S PAIN IN THE NECK CULTURE MUST END SAYS THE ABI

People claiming whiplash injuries should not be entitled to compensation unless there is objective evidence that they have suffered injury. This is one of several radical reforms which the ABI today said needs to be considered to reduce the UK’s whiplash epidemic and bring down the costs of motor insurance. Britain’s thriving whiplash industry is now pushing up the cost of the average motor insurance policy by a staggering 20%.

Despite a fall in the number of car crashes, whiplash claims have risen by a third in the last three years. Every year 570,000 people claim for whiplash injuries – enough to fill the London Olympic Stadium seven times over. Last year these claims cost insurers over £2 billion, adding an extra £90 a year to the average annual motor premium of £440.

Speaking at an international whiplash conference in Bristol today, James Dalton, ABI’s Head of Motor and Liability said:

“If whiplash was an Olympic sport, the UK would be gold medallists. The fact that whiplash is virtually impossible to disprove means that for too many it has become the fraud of choice, often aided and abetted by ambulance-chasing lawyers and claims management firms”.

Outlining ideas for radical reform, James Dalton added:
“The crackdown on our whiplash epidemic has started with the Government’s reform of civil litigation which will reduce the scope for ‘have a go’ claims. But we also need to consider radical action if we are to get a grip on whiplash, such as:

• A system where whiplash claimants receive no compensation for alleged pain and suffering (general damages) unless there is objective medical evidence of injury.
• Capping or reducing the level of damages for whiplash claims.
• Having a panel of independent doctors to assess whiplash claims, rather than the claimants GP.
• Greater use of bio-mechanical evidence that might enable the introduction of a speed threshold under which there would be a presumption that whiplash has not occurred.
“Only by thinking big and bold can we reduce the whiplash problem and the costs of motor insurance.”

The above was provided by the ABI and can be found here http://www.abi.org.uk/Media/Releases/2012/04/THE_UKS_PAIN_IN_THE_NECK_CULTURE_MUST_END_SAYS_THE_ABI_.aspx

ABI calls for reforms to free businesses from UK compensation culture

A recent article on The Association of British Insurers (ABI) website offers some advice to free businesses from the fear of the UK’s compensation culture and overzealous interpretations of health and safety rules that could hold back Britain’s economic recovery.

Speaking at a Chartered Institute of Environmental Health conference on 14th March, Nick Starling, the ABI’s Director of General Insurance, said:

“Businesses, especially the small businesses crucial to our economic recovery, need to be able to thrive, not operate worried by the constant risk of being sued for the most minor of injuries and confused by health and safety requirements. Insurance is here to help businesses do what they do best, free from the fear of being sued or engulfed in red tape. This is why following the industry’s recent insurance summit with the Prime Minister, the ABI has agreed to work with other stakeholders and develop a short simple leaflet to be included in policy documents, dispelling myths around what is and isn’t required from insurers.”

ABI data reveals that for every £1 paid out to settle ‘slip and trip’ style liability claims, nearly the same amount – an additional 93p – is paid out in legal fees. This together with a legal system that encourages people to make exaggerated and fraudulent claims – fuelled by ‘no-win-no fee’ claims management companies – means UK businesses are left shouldering high and disproportionate legal costs, which they are paying for through their employers’ and public liability insurance premiums. One large supermarket chain said it needed to keep five stores open a year to pay for personal injury costs alone.

With such high costs at stake, action is needed to prevent UK businesses feeling bogged down with overzealous interpretations of rules and health and safety myths. From annual electric testing of kettles, onerous risk assessments, misinformation about the need for dedicated health and safety consultants and even a ban on the use of bunting at events, there is a risk that prevailing health and safety myths can slow UK businesses down and foster risk aversion. The ABI supports the Government’s intention to introduce a portal for dealing with workplace injuries and public liability claims to speed up the payment of genuine claims and make the system more efficient and cost effective.

Nick Starling added:

“The UK’s compensation culture and high fixed legal fees means businesses are all too often left paying the high and disproportionate cost of settling compensation claims. The ABI has long argued for reforms to make our legal system more efficient, tackle spurious claims and relieve the burden on UK business. To help all firms, the Government must implement its reforms without delay.”

For more information or further advice on how you can reduce a compensation culture in your workplace please contact ECS Insurance Brokers on 0114 280 2830 or email enquiries@ecsbrokers.com

All above information is from the ABI and is available online at www.abi.org.uk

Property Seminar

Last week, ECS held a property seminar in association with UHY Wingfield Slayter accountants and Bell & Buxton Solicitors.  Ben Atha of ECS, speaking at the seminar about having the correct sum insured and some of the consequences of being underinsured said  ‘’it was fantastic to see local business people interested in ensuring they are maximising and correctly protecting themselves and their property assets, something so important in today’s volatile climate’’

The aim of the seminar was to increase awareness and knowledge about the legal, financial, tax and insurance requirements and implications of owning and renting commerical and residential property.  Jason Reynolds, Managing Director at ECS said ‘’The property market has seen a downturn in the last few years and people have tended to turn their attention elsewhere, but the future looks bright and the property market appears to be on the upturn once again so it seemed timely to remind people of these implications’’

We would like to thank all who attended the seminar and look forward to being able to reconnect with these and any new delegates in the future.  Updates to follow soon.

for more information about this or any other post on this site, or if you would simply like some advice, an insurance review or just feel you would like to talk to ECS then feel free to contact us on 0114 280 2830 or email enquiries@ecsbrokers.com

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