Croftons Solicitors LLP

David Cameron will this afternoon meet with motor insurance bosses (including Royal Bank of Scotland, Admiral, Axa, Aviva and Zurich Financial Services) about the rising number of bogus insurance claims in a bid to reduce premiums, which have risen by about 20% in the last year. In exchange for insurance firms slashing their motor premiums, the government will clampdown on whiplash claims.

The Prime Minister is expected to discuss raising the threshold on whiplash claims, including: the setting up a panel of experts to sign off whiplash injuries, introducing an impact speed limit of 15mph below which a whiplash injury cannot be claimed and imposing a financial threshold to as a deterrent for ‘nuisance’ claims.

Insurers will call for better training, zero alcohol limit for young drivers (who currently pay the highest premiums as they are statistically more likely to crash), and are expected to demand a statutory reduction in the fixed legal fees paid to personal injury lawyers as part of a wider ban on referral fees.

As to the impact on premiums? I think it would be naive to say that a reduction in the number in whiplash compensation claims would actually result in a reduction to premiums. Insurers will just find another reason to keep their premiums high to ensure a profit and in the meantime, the government will take steps to restrict people’s access to justice…again.

Chloe Shivraj, Graduate Member of ILEX

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Posted on 14.02.12

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