The Government recently announced that it will be taking ‘radical’ action against fraud, especially when it comes to exaggerated or falsified whiplash-related motor car insurance claims made by passengers and drivers in the wake of road traffic accidents, it was recently reported.
With car insurance rates on an inexorable upward climb, government ministers are keen in reducing the cost to consumers. The government is committed to working with car insurance companies to minimising the financial impact of whiplash-related claims to the industry, as last year saw £2 billion in costs spread across the entire motor insurance sector and resulted in an additional £90 added on to every honest motorist’s premium.
Those who make whiplash claims will no longer be able to go to their own GP when looking to have their medical condition evaluated, thanks to new governmental regulations. Instead, claimants will have to face a panel of independent medical professionals and have to meet higher thresholds before being permitted to make a whiplash-related injury claim.
Insurance providers say that the lion’s share of whiplash claims have no medical leg to stand on, especially in light of how claims volume has dramatically increased due to the advent of claims management firms. These companies have thrived by purchasing the personal details of insurance company customers that were involved in road traffic accidents and then encouraging them to make claims by contacting them via text messages or unsolicited phone calls.
The process behind the acquisition of these personal details – euphemistically referred to as ‘taking referral fees’ by the insurance industry – has since been outlawed, with insurers coming under heavy fire for their complaints about rampant whiplash claims while working to sell on customers’ information to firms that make whiplash claims on behalf of those customers.