Columnist

Whiplash and its effect on the motor industry

As you may know, whiplash, or hyperflexion of the neck, is one of the most common non-fatal car crash injuries and one of the main injuries covered by car insurers. Indeed, the incidence of whiplash-related insurance claims has more than doubled between 2006 and 2012.

Whiplash injuries arising from road traffic accidents can be debilitating for those who suffer them. It is therefore appropriate that those who sustain such injuries as part of an accident that wasn’t their fault should be able to claim compensation from the party which caused the injury.

However, the increasing occurrence of fraudulent or exaggerated insurance claims for whiplash have in recent years led to an across-the-board rise in insurance premiums. It is uneconomical for insurers to challenge every whiplash claim made, resulting in many claims being processed without the provision of substantial evidence on the part of the claimant.

This has prompted the coalition government to consider new legislation for regulating insurance claims in an effort to clamp down on instances of fraud and help reduce premiums for hard-pressed customers.

The lack of substantial statistical evidence about road traffic accidents makes it impossible to establish a causal link between the increased number of claims and the increasing incidence of accidents.

According to MPs, the government needs to improve upon its collection of statistical data so it is better equipped to detect fraudulent injury claims and can help the highways agencies improve road safety at accident black spots.

Recent legislation has been implemented that will mean that in successful personal injury claims lawyers will now likely be paid out of the claimants damages instead of through their insurers which has traditionally been the case. While lawyers argue that this will serve only to increase the insurers’ profit margins, the latter insist that the move will help to drive down insurance premiums.

While this may deter fraudulent claimants and the cash-for-crash compensation culture that the coalition government is so keen to defenestrate, the result for the honest claimant may be that it is harder to claim compensation. And if the compensation does come, it is likely to be less than the claimant deserves.

Over the past few months, the House of Commons Transport Select Committee has been investigating the handling of whiplash claims by insurers, medical professionals and law firms.

The committee concluded that exaggerated and fraudulent whiplash claims have contributed to the recent rise in insurance premiums, but that lack of statistical evidence makes it impossible to say exactly how much.

They called for greater regulation and more transparency from the motor insurance industry, advising the government to take action should the insurers fail to honour their commitment to reducing premiums.

For more information about making a personal injury claim the following website may be useful.

This was posted in Bdaily's Members' News section by Will Hemner .