Fresh plans to crackdown on the epidemic of whiplash claims have been announced by the Government. The potential outcome is that insurance premiums will be reduced in total by £1 billion a year, meaning each driver in Britain will save an average of £40 a year on their policy.
These savings would be made possible by a proposed decrease in the average payouts for whiplash injury from £1,850 to £425.
Under the government proposals which have been launched this week, compensation will only be paid out for a whiplash claim if a medical report is provided as proof of injury. At present, whiplash claims can be made successfully without evidence.
“One whiplash claim is paid out every 60 seconds”
The Justice Secretary, Elizabeth Truss, said: “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.
“These reforms will crack down on minor, exaggerated and fraudulent claims. Insurers have promised to put the cash saved back in the pockets of the country’s drivers.”
The Economic Secretary, Simon Kirby, said: “One whiplash claim is paid out every 60 seconds and it is unacceptable that responsible motorists have to pick up the tab.
“We are tackling the incentives which have created this compensation culture so that all drivers can save money on their motor insurance policies.”
