The UK government are set to unveil their plans to reform the way that whiplash claims are handled, in order to reduce the high insurance premiums as a result of exaggerated or fraudulent claims.They plan to setup independent medical assessments for whiplash claimants so that more accurate diagnosis is given. The government claim that insurance policies are too expensive as a result of compensation culture that exists in England that harms the average motorist.
At the moment it makes more financial sense for insurance companies to just accept a questionable claim. The new rules will allow more cases of to be heard in small claims courts. The Justice Secretary Chris Grayling says that honest drivers are having to bear the price of an unfair system that is open to abuse from law firms and drivers alike.
Ambulance chasing lawyers have been taking advantage of suspect whiplash victims for decades, although many cases are genuine and deserve compensation many are not and are greatly exaggerated. These reforms intend to single out suspect claims so that the real road accident victims get the compensation they deserve and the average motorist no longer have to bear the cost of excessive premiums as a result of compensation culture.
Recent figures have shown that personal injuries due to road traffic accident claims has increased 60% since 1006, although reported accidents have fallen by as much as 20% since then. Driving safety has been improved by new technology and legislation. Because of the high amount of claimants an average of 90 pounds has been added to insurance repayments by average motorists.
The government believe that by having a fairer way of diagnosing these types of injuries will help the genuine claimants get paid out more quickly by insurance companies. It will also prevent honest motorists from getting caught out by fraudulent claimants. The no win no fee deals will be rebalanced so if a defendant looses his case they will not have to pay legal fees or insurance premiums to the claimant's lawyer.
Referral fees are also set to go, as this enables law firms to sell claims on. Also, law firms will no longer be allowed to offer money or goods in return for a making a claim, regardless of whether the individual has a genuine claim.
The United Kingdom government are committed to putting and to the unfair compensation culture that exists in the United Kingdom, as well as reducing legal costs. Insurance companies have committed to putting these savings back to consumers through litigation costs.
The reforms will come into effect in April 2013. The government hope that these measures will put an end to the compensation culture that has existed in the UK for a few decades. The Association of British Insures have welcomed the whiplash claim reforms and believe that they will reduce insurance premiums and protect the average driver and consumer.
At the moment it makes more financial sense for insurance companies to just accept a questionable claim. The new rules will allow more cases of to be heard in small claims courts. The Justice Secretary Chris Grayling says that honest drivers are having to bear the price of an unfair system that is open to abuse from law firms and drivers alike.
Ambulance chasing lawyers have been taking advantage of suspect whiplash victims for decades, although many cases are genuine and deserve compensation many are not and are greatly exaggerated. These reforms intend to single out suspect claims so that the real road accident victims get the compensation they deserve and the average motorist no longer have to bear the cost of excessive premiums as a result of compensation culture.
Recent figures have shown that personal injuries due to road traffic accident claims has increased 60% since 1006, although reported accidents have fallen by as much as 20% since then. Driving safety has been improved by new technology and legislation. Because of the high amount of claimants an average of 90 pounds has been added to insurance repayments by average motorists.
The government believe that by having a fairer way of diagnosing these types of injuries will help the genuine claimants get paid out more quickly by insurance companies. It will also prevent honest motorists from getting caught out by fraudulent claimants. The no win no fee deals will be rebalanced so if a defendant looses his case they will not have to pay legal fees or insurance premiums to the claimant's lawyer.
Referral fees are also set to go, as this enables law firms to sell claims on. Also, law firms will no longer be allowed to offer money or goods in return for a making a claim, regardless of whether the individual has a genuine claim.
The United Kingdom government are committed to putting and to the unfair compensation culture that exists in the United Kingdom, as well as reducing legal costs. Insurance companies have committed to putting these savings back to consumers through litigation costs.
The reforms will come into effect in April 2013. The government hope that these measures will put an end to the compensation culture that has existed in the UK for a few decades. The Association of British Insures have welcomed the whiplash claim reforms and believe that they will reduce insurance premiums and protect the average driver and consumer.
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