One MP has made the quixotic claim that he will not rest in his quest to institute reform into the motor car insurance industry, sources say.
Blackburn MP Jack Straw has been campaigning tirelessly against car insurance companies, revealing last year the ‘dirty secret’ of referral fees, a practice that has insurers selling on personal details of its customers to claims management companies, car hire firms, or legal solicitors. The proliferation of such referral fees have been said to lead to rampant car insurance rate increases across the country as the number of accident claims rocket.
Mr Straw’s revelation led to a widespread campaign for the abolition of referral fees, which has resulted in many other movements related to it, such as reformers pressing for an overhaul of the no win, no fee accident claim system. Others have since called for a personal data clampdown, argued for claims companies to be regulated more tightly, and called for the burden of proof to be raised higher when it comes to whiplash injury claims.
A Transport Select Committee report published recently supported several of Mr Straw’s recommendations. However, it did not go so far as to call for a blanket ban on referral fees, something that prompted the Blackburn MP to step up his campaign.
Mr Straw remarked that he is pushing his agenda so aggressively because of the number of Blackburn community members that have complained about their inability to secure discount car insurance quotes. Younger drivers within his constituency have been particularly hard pressed to find insurance for a reasonable cost, with the results sometimes being that high premium prices have driven them right off of the road, the MP also said.