WHIPLASH CLAIMS

Car insurers were under fire this week as they “encourage fraud and exaggeration” say MPs. 

MPs on the Transport Select Committee said insurers must immediately “put their house in order”.  MPs on the committee said insurance companies were guilty of accepting claims that had not received proper scrutiny and also accused the insurers of ignoring a previous recommendation to be more transparent about their links with other parties involved in accident claims, such as Claims Management Companies. 

The Committee made various recommendations such as requiring an accredited scheme for medical practitioners to file reports on accidents and asked the Government to consider reducing the period in which a claim can be brought for an accident down to one year, rather than the current three years. 

Did you know that insurers regularly referred details of accident victims onto their own solicitors panel and certainly before April 2013 when the law changed, referral fees were paid by the lawyers for these cases.  In addition insurers will often look to deal with a Claimant direct and offer a sum of money straight after an accident where the Claimant is not aware of the consequences of settling the claim at that stage before the medical prognosis will have become clear.

Let us hope the insurers take heed.......