UK to crack down on fraudulent auto claims

The government plans on ending cash compensation for minor whiplash injuries

The UK Chancellor of the Exchequer George Osborne has pledged to address fraudulent whiplash claims which cost 2 billion pounds each year.

“The government intends to introduce measures to end the right to cash compensation for minor whiplash injuries, and will consult on the details in the New Year,” Osborne said in his Autumn Statement.

He also plans to transfer personally injury claims under 5,000 pounds to the small claims court, cutting legal costs.

He expects these new measures will reduce individual policies by between 40 and 50 pounds.

Aviva’s Group CEO Mark Wilson said in a release the company plans to pass all the savings onto customers, which will reduce premiums by more than 10 percent.

“As well as reducing motor premiums,” said Maurice Tulloch, CEO of Aviva UK’s general insurance business, “this initiative should also turn down the volume of nuisance calls and texts, fuelled by some unscrupulous claims management companies.”

 

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Transcontinental Media G.P.