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Government plan to target bogus whiplash claims

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The Government have unveiled plans to reduce the number of bogus whiplash claims which is reasoning behind insurance premiums increasing.

Around 600,000 whiplash claims are reported each year which could potentially add £90 to an average car insurance policy with £2 billion paid out last year.   With so many claims being made each year it is causing motorists who don’t claim to have an increased premium as prices continue to rise within the insurance industry.

A consultation by Justice Secretary Chris Grayling has now been launched which will make it easier for insurers to challenge claims from traffic accidents. The plans aim to ensure that real cases go ahead but those that are exaggerated, misrepresented or fraudulent are challenged. 

The Government are aiming to tackle the problem of fraudulent claims after figures were published showing there has been a 60% increase in personal injury claims since 2006 despite a 20% fall in reported road accidents.

It is hoped the new plans will put an end to the on-going problem of fraudulent whiplash claims which sees honest motorists being penalised by higher premiums.

James Dalton, Head of Motor and Liability at the Association of British Insurers said: “We are pleased that the Government recognises that tough action is needed to protect honest motorists from the UK’s whiplash epidemic. For too long, whiplash has been seen as the ‘fraud of choice’ our roads are safer, yet every day over 1,500 whiplash claims are made. These claims add an extra £90 a year to the average motor insurance premium.

“More effective diagnosis of whiplash will help genuine claimants get paid out quickly and reduce the scope for fraud, so helping to ensure that honest motorists do not end up footing the bill for the cheats through higher insurance premiums”.

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By Amanda Bainbridge