Jack Straw says new laws to weed out fraud a good start

Blackburn MP Jack Straw has recently said that the new laws proposed to weed out fraudulent car insurance claims are a good start, but there is still much more work to be done in lowering the price of motor car insurance in the UK.

Mr Straw has been at the forefront of a campaign to institute reforms to the insurance industry in the face of massive car insurance rate hikes and personal injury firms purchasing the personal details of customers from insurers.  Ministers recently hosted an insurance summit this week in the capital in an effort to discuss measures that could be taken to curb the activities that lead to eye watering insurance costs for consumers.

Kenneth Clarke, the Justice Secretary, has launched a consultation on the feasibility of setting up an independent whiplash claim assessment panel, as the number of these expensive claims is said to have risen to in excess of 1,500 on a daily basis.  The consultation will examine whether the small personal claims threshold should be raised to £5,000, up from £1,000, in order to act as an encouragement to people to use the fast-track scheme instead of taking a more traditional – and more expensive – legal route.

A law barring the selling on of personal information to solicitor firms and claims management companies has already been passed, with Mr Straw praising both this new law and Mr Clarke’s consultation, but adding that there must be more done.  The Blackburn MP expressed his gratitude that the Government has listened to the concerns he’s raised after speaking to his constituents, but added that there must be further legal changes as well in order to lead to effective change in the insurance industry.

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