Insurers propose scrapping compensation for whiplash

The insurance industry has suggested for the first time that whiplash compensation could be removed altogether.

James Dalton, head of motor and liability for the Association of British Insurers, said it was time for a ‘public policy debate’ on removing all damages for low-value claims, instead asking insurers to pay directly just for treatment.

Dalton has previously called for discussion on reducing damages paid to whiplash victims but this is the first time a complete removal has been mooted.

‘We need a debate about whether someone should be awarded money for a low-value, low-impact and very minor injury claim,’ he told the Modern Claims conference in London. ‘It’s a debate about whether you should be provided with rehabilitation and no cash. That is a legitimate public policy debate for society to have and politicians to decide on.’

Dalton also reignited the argument about the value of solicitors in low-value claims and said the ABI is working on safeguards to persuade the government to raise the small claims limit.

The Ministry of Justice last year opted not to increase the limit but Dalton said he was confident that will change ‘depending on the outcome of the election’.

He added: ‘There will always be a role for PI lawyers in complex, high-value claims – my question is whether there is a place for them at all in low-value factory-based claims. The MoJ made it clear last year there were good arguments for the claims limit to up to £5,000 – that will come up again sooner rather than later.’

Claimant groups the Motor Accident Solicitors Society (MASS) and Association of Personal Injury Lawyers (APIL) said they would fight any attempt to remove compensation altogether from whiplash victims.

MASS chair Craig Budsworth said recompense should always include loss of amenity as well as rehabilitation.

‘Even if their injury means they can’t go to the gym – for some people that is their life and that deserves compensation. We will be saying that is wrong for the innocent accident victim.’

Deborah Evans, chief executive of APIL, said all sides had worked together on ways to combat fraud in the system, but removing solicitors would take away a vital barrier to fraudulent claims.

She added: ‘It has always been much easier when you have the client across the table from you to tell if they are being truthful. The more removed we get from the client the more fraud will prosper.’

(source: lawgazette.co.uk)

Accredited medical panels to verify whiplash

Under proposals announced by the MoJ panels of "accredited" doctors are to be set up to vet all whiplash claims. The process of approving doctors for the panels will begin soon, in order to enable the system to start next year.

 

According to the ABI, whiplash is now costing motorists £2bn a year, adding an average of £90 to each premium. Chris Grayling said: "We are turning the tide on the compensation culture and helping hardworking people by tackling high insurance premiums and other motoring costs. It's not right that people who cheat the insurance system get away with it while forcing up the price for everyone else - so we are now going after whiplash fraudsters and will keep on driving premiums down."

 

Independent doctors' panels were welcomed by experts. James Dalton, the ABI's head of motor and liability, commented: "We have long called for more robust medical assessment of whiplash claimants.

 

Setting up independent panels of accredited experts will help the UK shake off its reputation as the whiplash capital of Europe." Stephen Glaister, director of the RAC Foundation, added: "Bogus whiplash claims create a grinding financial burden on millions of honest motorists. These proposals are to be welcomed if they manage to weed out fraudulent claims in a fast, cost-effective manner."

(source: the times)

Whiplash targeted in car costs drive

A package of measures aimed at bringing down motoring costs, including insurance premiums, have been announced by the government.

Ministers have pledged to crack down on the "compensation culture" on claims for whiplash injuries.

And there are plans to pilot fuel price comparison signs on major roads and freeze the cost of the MoT test.

The statutory maximum price of the MoT test for a car will be pegged at £54.85 until 2015.

 

Medical report

The inflated cost of fuel on major roads is among the most common complaints among drivers.

In some areas petrol and diesel can cost 10p per litre more at motorway service stations.

The government wants to install a series of price comparison signs which will show the cost of fuel at all petrol stations along any given route.

Ministers are also promising to save motorists money by tackling what they call the compensation culture.

Independent medical panels will be set up to identify exaggerated or fraudulent claims for whiplash.

Currently insurers can make an offer to claimants without a medical report.

Justice Secretary Chris Grayling said: "We are turning the tide on the compensation culture and helping hard-working people by tackling high insurance premiums and other motoring costs.

"It's not right that people who cheat the insurance system get away with it while forcing up the price for everyone else - so we are now going after whiplash fraudsters and will keep on driving premiums down."

Mr Grayling later told BBC Radio 5 live he wanted any cost reductions from clamping down on whiplash payouts to be used to lower drivers' premiums, rather than boost companies' profits.

 

'Shake off reputation'

Labour MP Louise Ellman, who chairs the Commons Transport Select Committee, said she welcomed the package of measures announced, particularly when it came to whiplash claims.

"The Transport Select Committee has looked at this over a long time and very recently we recommended that insurance companies shouldn't pay out for whiplash claims without a medical report and that those medical reports should come from independent medical practitioners," she said.

"So I'm very pleased that the government have now accepted one of our key recommendations."

GP Dr Rosemary Leonard told BBC Breakfast that the UK has a rate of whiplash that is "way higher" than the rest of Europe and "it is thought an awful lot of them are bogus".

"If you had a genuinely nasty shunt in your car and you went to your doctor and you said 'Well my neck's aching a bit,' and the doctor just said 'Well actually I don't believe you,' you would quite rightly be very annoyed.

"So as GPs we're in this position where we have to go along with what the patient says, because if we don't and it's a genuine case we could be sued."

Roads minister Robert Goodwill said: "The costs of owning and running a car are felt by millions of households and businesses across the nation. The government is determined to help keep those costs down."

Statistics from the AA show that motor insurance premiums are falling at the fastest rate since 1994 - 12.3% for an average comprehensive policy in the year to October.

James Dalton, Association of British Insurers head of motor and liability, said: "We have long called for more robust medical assessment of whiplash claimants.

"Setting up independent panels of accredited experts will help the UK shake off its reputation as the whiplash capital of Europe."

The moves have been welcomed by the Institute of Advanced Motorists, and motoring organisations the RAC and the AA.

 

(source: bbc.co.uk)

APIL launches 'Back Off' campaign

The Association of Personal Injury Lawyers has launched its 'Back Off' campaign to reduce whiplash injuries by educating motorists about the dangers of tailgating.

The campaign reflects one of the association's key objectives of working to prevent needless injury and sits alongside APIL's other campaign activities which include lobbying to prevent an increase in the small claims court limit, providing written and oral evidence about whiplash claims and producing a report to dispel the myths associated with whiplash injury claims.