AA Insurance has welcomed a report by the Transport Committee today, following its inquiry into the cost of car insurance.
The report comes after Prime Minister David Cameron announced his new year resolution to “kill off the health and safety culture for good”.
In their report, the Transport Committee said that the sharp increases in car insurance premiums have been largely driven by an increase in personal injury claims.
“We must kill the compensation culture that has sharply driven up car insurance premiums,” said Simon Douglas, director of AA Insurances. “The recommendations from the Transport Committee are a positive step towards doing that.”
The Transport Committee noted in it’s report that despite the number of collisions on UK roads falling the number of personal injury claims has increased, adding substance to the PM’s words last week.
The AA also raised concern about the type of injuries people are claiming for.
“A claims culture has developed to the extent that it has become accepted that if another vehicle hits your car, you should make an injury claim,” Douglas continued. “That’s regardless of how serious the injury is, or even if no injury has actually been suffered. The Transport Committee has clearly recognised that this has driven up premiums for everyone.
“Of course, those who are injured in crashes should gain access to justice and compensation for their injury. But too many people are claiming for minor whiplash that is almost impossible to clinically prove.
“The majority of drivers don’t make injury claims yet they are paying the price of those who do. I hope the Committee’s recommendations are taken on by the Government.”
Mr Douglas said that the influx of personal injury claims has only encouraged more people to do the same, and has even encouraged fraudulently staged collisions to make claims.
“But the insurance industry is investing heavily in fraud detection and successfully contesting false injury claims. Formation of the new police Insurance Fraud Unit this month, which is one result of the earlier stages of the Transport Committee’s inquiry, will also go a long way to help bring fraudsters to book,” he says.
Mr Douglas said that the MPs’ call on the Government to impose a higher threshold for the payment of compensation in whiplash cases should be welcomed.
