Millions of motorists could see their car insurance cut by about 40 pounds a year thanks to plans to crackdown on the epidemic of whiplash claims.
Whiplash claims are 50% higher than a decade ago, despite the
The consultation paper outlines plans to scrap the right to compensation or put a cap on the amount people can claim for minor whiplash injuries. Capping compensation would see the average pay-out cut from 1,850 pounds to a maximum amount of 425 pounds. Compensation would only be paid out if a medical report was provided as proof of injury.
Other measures include:
- introducing a transparent tariff system of compensation payments for claims with more significant injuries
- raising the limit for cases in the small claims court for all personal injury claims from 1,000 pounds to 5,000 pounds
- banning offers to settle claims without medical evidence. All claims would need a report from a MedCo accredited medical expert before any pay out.
"For too long some have exploited a rampant compensation culture and seen whiplash claims an easy payday, driving up costs for millions of law-abiding motorists.
"These reforms will crack down on minor, exaggerated and fraudulent claims. Insurers have promised to put the cash saved back in the pockets of the country's drivers."
The government's commitment to tackle the whiplash epidemic has previously been welcomed by the
"One whiplash claim is paid out every 60 seconds and it is unacceptable that responsible motorists have to pick up the tab.
"We are tackling the incentives which have created this compensation culture so that all drivers can save money on their motor insurance policies."