General Insurance Article - Whiplash reforms are dropped for a second time by Government


The AA has comments on the news that the Prisons and Courts Bill which contained much-anticipated reforms to how whiplash injuries are compensated have been dropped for a second time.

 The Government says that it’s been abandoned because of the June 8th General Election and it’s not clear whether the Bill will be picked up again in future parliamentary sessions.

 Michael Lloyd, the AA’s director of insurance points out: “This is the second time that the reforms have been dropped. They were shelved last October following the Brexit vote, but were re-introduced by the new government.

 “Drivers have seen their car insurance premiums rocketing and most will react with despair that the whiplash gravy train once again has the green light to carry on.

 “There was some hope that if claims could be stemmed it would help to bring premiums down. There seems little prospect of that now.”

 In an AA-Populus poll of over 19,000 (1) drivers, almost two thirds (63%) say they have been cold-called by personal injury claim firms within the past 12 months, urging them to make a claim for a past collision even if they had suffered no injury. A third (34%) were called more than ten times. Four in ten (44%) considered that making a claim for minor injury compensation is ‘an easy way to make some money’.

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