The Scam That Costs Drivers £2.5 Billion a Year! Are In Car Cameras The Answer?

We came across this article in a daily newspaper that made us think.  Could In Car Cameras and Dash Cams be made legal in the future to prevent fraud? Article below written by Daniel Jones who is a Consumer Editor for The Sun.

Britain is the whiplash capital of the world as more and more crooks here make bogus claims, new figures show.

Generous payouts, a lack of proper medical checks and agents allegedly encouraging fake claims mean there are now 2,300 a day, up nine percent on  a year ago.

Despite crashes FALLING by 30 per cent since 2005, the number of claims for personal injury is up 62 per cent over the same period.

By contrast, motorists in France and Germany are making fewer whiplash claims each year.

In all the UK is on track to submit 840,000 motor injury claims for the year ending next month, the vast majority including whiplash.

This is 200 extra claims every day compared to the number the previous financial year.

It means claims are at a near-record levels and are costing motorists £2.5billion a year, which adds £93 to the average annual motor insurance premium, making it £372.

Insurance experts say the majority of UK whiplash claims are fake, with fraudsters encouraged by cash payouts of £2000 to £3000.

Industry figures show the number of whiplash claims in the UK is way out of proportion with those in the rest of Europe, backing up suspicion that most here are bogus.

For example, a staggering 80 per cent of all personal claims made to Britain’s biggest insurer Aviva include “whiplash injuries”.  In France it is just three per cent and in Germany 47 per cent.

And the association of British Insurers has previously told the House of Commons Transport Committee that Britian is the “whiplash capital of the world”.  Real whiplash involves sudden movement, typically from being rear-ended, that strains neck muscles and sometimes damages soft tissue.

Aviva wants MPs to take action, and has a Road To Reform plan to cut bills.  This included stopping cash payments to most claimants and paying for rehab treatment instead.

Those with serious whiplash that stops them working would still qualify for compensation.

Another idea is that all claims are made in a year rather than within three to discourage so-called cash-for-crash firms asking people to claim years later.

Drivers are Fed Up

 

They also want the banning of referral fees.  These are paid to the insurance firms by “Claims Management” firms in order to get the contact details of motorists who have had  accidents. They then contact the motorists toencourage them to make injury claims.

And the firm thinks the claim threshold at which personal injury lawyers can get involved should be increased. The saving would come because lawyers could not reclaim their costs for claims below £5,000 rather than the current £1,000.

Aviva boss Maurice Tulloch said: “Our customers have told us they are fed up with the compensation culture and all its trimmings”.

“The nuisance texts and calls from the claims management companies. excessive Lawyers’ fees and fraudsters abusing the system – it doesn’t have to be like this.”

Average Annual Insurance

UK – £372

France – £223

Germany – £186

Whiplash as % of Injury Claims

UK – 80%

France – 3%

Germany – 47%

Injury Claims Trend

UK – Up 62% from 2005-2013

France – Down 55% from 2000-20014

Germany – Down 50% over 40 Years