Whiplash Summit tackles rising liability claims problem

Posted on February 16^th 2012

The sharp increase in liability insurance claims as a result of minor accidents received attention at the highest level this week.

On Valentine's Day not much love was felt as Prime Minister David Cameron met with many of the best-known insurance companies in the UK, and the Association of British Insurers, to discuss the state of the motor insurance industry.

The summit came about as a number of factors are piling up, making vehicle insurance in the UK more expensive and open to abuse. Whiplash claims, the focus of much of the press surrounding the summit, have increased fifty per cent recently, despite fewer accidents happening.

There are criminal gangs deliberately causing crashes to make fraudulent claims and even bona fide accidents now cause liability insurance claims. This is because victims who previously would have thought nothing of it are now encouraged by ambulance chasing legal firms to make liability claims.

This latter situation is exacerbated by legal claim firms paying hospitals and other organisations for the contact details of people who have had accidents. They are then bombarded with phone calls and texts encouraging them to sue.

The situation is causing increased costs for everyone in the UK, whether personal or business, as insurance premiums have gone through the roof to compensate. Businesses which rely on motoring heavily will already be paying but could also face further hits on their bottom line as liability insurance premiums increase, unless this menace is dealt with.

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