February 23, 2012

Karl heralds Transport Select Committee Report call for a crackdown on bogus whiplash insurance claims

The Member of Parliament for Lincoln, Karl McCartney, has voiced his support for the Transport Select Committee’s call for a crackdown on bogus whiplash insurance claims.  The cost of car insurance could be cut if the Government restricts the huge number of subjective whiplash injury claims, MPs have reported.

In addition, the Committee argues that claimants should have to prove they have suffered a whiplash injury and wants insurers to be banned from selling any form of customer information.  The government intends to ban them from receiving referral fees for this data, but only for personal injury claims.

The Committee also pointed out that there has been a 70% rise in motor insurance claims in the past six years, despite a 23% drop in the number of casualties actual caused by road accidents.

Mr McCartney said, “I entirely support the Transport Select Committee’s recommendations.  The cost of motor premiums has been driven up by insurers, solicitors and claims management companies who have encouraged people involved in road accidents they did not cause to claim for personal injury, car hire, and other legal costs. I also echo the Committee’s call for the insurance industry to abandon sharp practices that push up premiums such as passing drivers’ personal data to other parties or taking secretive referral fees from solicitors, garages and car hire firms.

“While we do need to improve the regulation of this, I feel very strongly that there has to be changes in the law too.  And whilst we are examining the issue of insurance, costs, claims and scans we need to address the 1.5m drivers on our roads that remain uninsured.”

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For further information, please email Karl McCartney MP at karl.mccartney.mp@parliament.uk or call 020 7219 7221.