The rise in car insurance rates simply don’t add up, say MPs – especially in light of new figures that indicate road accident casualties have been on the decline. New statistical data from the Department for Transport indicate that 2009 road accident injury figures totaled 163,553, which represents a 31 per cent decrease from the national average from 1994 to 1998.
As a result of the discrepancy between declining accident rates and increasing insurance premiums, MPs have launched an investigation into its possible origins. Witnesses have been called in an evidence-gathering endeavour that started in late 2010 and continues to this day.
Now the Transport Committee from the House of Commons has released a new report in which they call on car insurance companies to work harder to reduce the amount of fraudulent insurance claims that slip through the cracks. MPs had serious concerns regarding the relationship between referral fees and personal injury claims, according to the report.
The report highlighted an increase of 70 per cent in the amount of motor accident related injury claims from 2005 to 2010, raising concerns that ‘cash for crash’ schemes have been leading to increased premiums for honest motorists.
The report stated that premiums have increased due to the heightened number of road traffic related injury claims and they now pay far more for legal costs and injury compensation than they did in the past. It went on to say that while the Transport Committee welcomed the wider access to justice, such increased access should not be providing opportunities for people to engage in motor insurance fraud for injuries that are wholly fabricated or exaggerated to the point of absurdity.