UK named world capital for whiplash

The UK has overtaken the US for whiplash claims - according to new analysis. In America, around two thirds of all injury claims are for whiplash, while in the UK it's closer to eight in ten. It's not that we have weaker necks and more delicate constitutions than drivers in the US - it's because we have such a cut-throat claims management industry.

The figures come from LV=, which looked at drivers who have had an accident within the last two years. The insurer found that on average the driver will get five calls or texts after a crash - with most people told there is 'money waiting for them'. Many people said they had felt pressured into making a claim.

More than half of all of those involved in a crash received at least one call or text encouraging them to make a claim. Some 44% were contacted within 24 hours of the accident, and one in eight even said they were contacted about the crash before they'd had a chance to report it to their insurer.

In most cases the accident victim had no idea how their details had been obtained. Meanwhile, of those who went to hospital after the crash, two thirds said they had been approached by someone who said they should claim compensation.
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Official report

The government has promised to clamp down on whiplash fraud. It said in its Autumn Statement that it would consult on how to tackle whiplash claims - in an effort to keep insurance premiums down. It has now published the result of the consultation.

The report pointed out that some steps had already been taken - including banning referral fees between solicitors, insurers and claims management companies for personal injury claims, and introducing fixed costs for medical reports.

The report reiterated plans to end the right to cash compensation for minor whiplash claims by removing the right to general damages for minor soft tissue injuries - as well as increasing the small claims track limit to £5,000.

It also wants to see better data sharing about fraudulent claims and an improvement in the quality of the data that is shared. It wants insurers to defend more claims, and be alive to how fraud risks may evolve when the new changes are introduced. And it wants the regulations covering claims management companies to be strengthened.

Action needed now

The insurer welcomed the recommendations, but added that more needs to be done right now, to protect drivers from the pernicious effects of the claims management business. Martin Milliner, GI Claims Director of LV= insurance, said: "We would like to see a quick and comprehensive response from Government to implement all the Insurance Fraud Taskforce's recommendations".

"Already we are noticing a rise in rehabilitation fraud, highlighting the need for swift implementation of the Autumn Statement reforms. The more time it takes to implement changes, the easier it makes it for fraudsters to find another loophole, hitting the pocket of the honest consumer."

He has also warned against piecemeal approaches, saying: "For years it's been a game of cat and mouse between the insurance industry and fraudsters – when what we need is a multi-pronged solution that will benefit the consumer once and for all."

We will have to wait and see whether the government grasps this opportunity to crack down on whiplash claims and save us all £50 on our policies - or whether it will sit on its hands while claims management firms and fraudsters line their pockets.