Cameron singles out whiplash claims

Posted:14th February 2012

Category:Car Insurance

Prime Minister David Cameron is planning to target whiplash claims as he looks to bring Britain's "compensation culture" under control.

Cameron is hosting a summit with insurance, business and consumer groups at Downing Street and the £2 billion-a-year cost of whiplash insurance claims is set to form a key part of the discussions.

Number 10 is keen to get to grips with the matter, describing the UK as the "whiplash capital of Europe".

It has been estimated that the 1,500 daily claims recorded for even the most minor accidents can add around £90 to average insurance bills.

These rises have the potential to hit haulage companies hard in the pocket as they secure multiple HGV insurance policies.

The Commons Transport Committee recently recommended increasing the threshold for claims by using factors such as speed and more extensive medical evidence.

Other concerns expected to be raised at the summit include businesses that are being forced to go beyond legal minimums to secure insurance.

Mr Cameron is expected to say: "I am determined to tackle this damaging compensation culture which has been pushing up premiums.

"I want to stop trivial claims, free up businesses from the stranglehold of health and safety red tape and look at ways we can bring costs down."

Shadow transport minister John Woodcock said: "Motorists are already feeling the squeeze from the VAT hike on fuel and want to see less talk and more action from this out-of-touch Government.

"Getting insurance costs under control requires the Government to bring forward concrete proposals and as a start support Labour's proposal to limit whiplash claims."

Paul Cartwright, Staveley Head's executive director said: "This is welcome news and it will be interesting to hear the outcome of the summit.

"But eradicating this plague on the industry needs major legal reforms, so I wouldn't expect injury statistics to improve any time soon."

Staveley Head is a leading provider of Car Insurance in the UK.

For more information regarding this article, or to compare Car Insurance quotes, contact Staveley Head on 0845 017 9991.