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| Whiplash adds £118 to your car insurance bill | Whiplash adds £118 to your car insurance bill |
| (7 months later) | |
| Whiplash and other personal injury claims are costing drivers an extra £118 on their car insurance bill, according to Britain's biggest insurer, Aviva. | Whiplash and other personal injury claims are costing drivers an extra £118 on their car insurance bill, according to Britain's biggest insurer, Aviva. |
| The number of whiplash claims has spiralled to 550,000 a year, landing insurers with a compensation bill of £3bn. Aviva says that much of the money – £2,500 on every whiplash claim – is wasted on legal fees and payments to claims management companies. It proposes a number of reforms to the "compensation culture" that, if accepted, could cut car insurance bills by an average of £60 a head. | The number of whiplash claims has spiralled to 550,000 a year, landing insurers with a compensation bill of £3bn. Aviva says that much of the money – £2,500 on every whiplash claim – is wasted on legal fees and payments to claims management companies. It proposes a number of reforms to the "compensation culture" that, if accepted, could cut car insurance bills by an average of £60 a head. |
| The Association of British Insurers reckons that as many as one quarter of whiplash claims may be fraudulent. "For too long, it has been seen as the 'fraud of choice'. Our roads are safer, yet every day over 1,500 claims are made. More effective diagnosis of whiplash will help genuine claimants get paid out quickly and reduce the scope for fraud, so helping to ensure that honest motorists do not end up footing the bill for the cheats through higher insurance premiums." | The Association of British Insurers reckons that as many as one quarter of whiplash claims may be fraudulent. "For too long, it has been seen as the 'fraud of choice'. Our roads are safer, yet every day over 1,500 claims are made. More effective diagnosis of whiplash will help genuine claimants get paid out quickly and reduce the scope for fraud, so helping to ensure that honest motorists do not end up footing the bill for the cheats through higher insurance premiums." |
| Aviva's proposals come ahead of the Ministry of Justice consultation on whiplash which ends on March 2013. Dominc Clayden, claims director at Aviva, is pressing for the introduction of a "truly independent" panel of medical experts to determine cases, and says consumers support the move. | Aviva's proposals come ahead of the Ministry of Justice consultation on whiplash which ends on March 2013. Dominc Clayden, claims director at Aviva, is pressing for the introduction of a "truly independent" panel of medical experts to determine cases, and says consumers support the move. |
| It found that 95% of drivers say they believe unnecessary whiplash claims are behind increases in car insurance premiums, which have jumped 80% since October 2008. | It found that 95% of drivers say they believe unnecessary whiplash claims are behind increases in car insurance premiums, which have jumped 80% since October 2008. |
| Aviva also researched almost 400 UK drivers who have made a PI claim and found that only one third spent their compensation on medical treatment or physiotherapy. Others used the money to pay off debts, buy luxury items such as TVs and computers (12%) or to go on holiday (9%). | Aviva also researched almost 400 UK drivers who have made a PI claim and found that only one third spent their compensation on medical treatment or physiotherapy. Others used the money to pay off debts, buy luxury items such as TVs and computers (12%) or to go on holiday (9%). |
| Aviva is seeking a ban on individuals going to claims management companies and lawyers rather than first contacting the "at fault" insurer. | Aviva is seeking a ban on individuals going to claims management companies and lawyers rather than first contacting the "at fault" insurer. |
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