Whiplash Fraud Likely at Fault for Rising Coverage Prices reports Classic Insure
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  • Whiplash Fraud Likely at Fault for Rising Coverage Prices reports Classic Insure

    (Transportation-News.com, March 12, 2013 ) England, UK -- A new survey by Britain's largest insurer, Aviva, found that whiplash and personal injury claims are costing drivers an additional £118 on their car insurance bill. The total number of whiplash claims have grown to 550,000 per year, which places insurers with a compensation bill of £3 billion. Aviva stated that a large portion of the money is lost on legal fees, while payments to claims management companies take up another large portion. The purpose of the number of reforms to the “compensation culture” could cut car insurance bills by nearly £60 a head on average.

    According to the Association of British Insurers, nearly a quarter of whiplash claims are likely 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 proposal come before the Ministry of Justice consultation that will look into whiplash that ends in March of 2013. Dominic Clayden, claims director at Aviva, has recently pressed for the introduction of what he calls a “truly independent” panel of experts to determine cases such as whiplash. He states that the average consumer supports the move to have such implementation.

    He states Aviva found that 95% of driver state they believe there are unnecessary whiplash claims that cause the increase in car insurance premiums. Such cases have jumped up by 80% since October of 2008.

    Aviva has researched nearly a half-million UK drivers who have specifically made a PI claim and found that a mere 33% spent their compensation on medical treatment physiotherapy. Others used the money to pay debts and purchase luxury items. Almost 10% (one in every 10) went on holiday with their money.

    About Classic Insure:
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    Source: EmailWire.Com

    Source: EmailWire.com

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