The British Insurance Brokers’ Association (BIBA) has called for the Government to commit to a timescale and announce details for its work to reduce the number and cost of fraudulent whiplash claims.
The call follows the announcement in the Government’s response to the Transport Select Committee’s follow up report on the cost of motor insurance, where they committed to urgently work with the insurance industry to identify and investigate appropriate ways to effectively reduce the number and cost of fraudulent whiplash claims.
Eric Galbraith, BIBA’s Chief Executive, said: “We broadly welcome the Government’s response and will continue to work closely with them. However we want them to speed up their work to reduce fraudulent whiplash claims and urge them to provide more details and timescales to move this forward.”
BIBA believes that fraudulent whiplash claims are the principal cause of the increasing cost of motor insurance with more than 571,000 reported claims annually, costing innocent policy holders £2billion per year.
Graeme Trudgill, BIBA’s Head of Corporate Affairs, added: “BIBA will continue to work closely with Government on all of the issues outlined in the report and in particular the access to DVLA driver records anti-fraud project. BIBA has been working hard to help consumers with motor premiums and we have recently launched the joint government agreement on signposting. This will help older drivers more easily access motor insurance.”
BIBA has published an eight point plan to reduce the cost of motor insurance
1. Implement many of Lord Justice Jackson’s recommendations and set out a timetable and actions to address fraudulent whiplash claims.
2. Provide the insurance industry access to DVLA driver licence records to reduce fraud.
3. Promote the system of signposting to help people access suitable insurance.
4. Review the implementation of the FSA’s guidelines for the selling of general insurance policies through price comparison websites, published six months ago.
5. Young driver risk and safety – Review the Pass Plus system, the driving test and take account of hazard perception, situational judgement and attitude awareness and develop the wider use of telematics technology
6. Reform the Northern Ireland legal system in regard to the handling of personal injury claims.
7. Greater regulation of claims management companies.
8. Greater promotion of the new system of Continuous Insurance Enforcement by Government to reduce the cost of uninsured driving.