CRACKDOWN ON WHIPLASH CLAIMS
Plans to cut compensation for whiplash claims could see car insurance premiums reduced, benefitting millions of motorists.
Over the past 10 years claims for whiplash have risen by 50%, which has cost insurance companies around £1bn per year. According to the government insurers have promised to pass on the savings, which would be worth about £40 a year.
Ministers made a promise last year to either scrap whiplash claims of put a cap on the amount that can be claimed.
The ministry of justice has suggested that these claims could be banned or capped to a maximum of £425 – at the moment the average payout for a whiplash claim stands at £1,850.
The number of road accidents in the UK has been falling but the number of whiplash claims has risen. "For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists," said Justice Secretary Liz Truss.
"These reforms will crack down on minor, exaggerated and fraudulent claims."
Posted: 22/11/2016
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