Car insurance premiums for millions of motorists could fall by £40 a year following a government crackdown on fraudulent whiplash claims.
Under Ministry of Justice proposals, whiplash injury payouts would be much more difficult to obtain, The Guardian reports. Insurers say the measures will end the UK’s status as the whiplash capital of the world.
The proposals are intended to stamp out a ‘toxic’ compensation culture that has pushed up motor premiums, led to consumers being bombarded with nuisance text messages and calls, and put additional pressure on the NHS.
Michael Lloyd, the AA’s director of insurance, said: ‘AA members are rightly concerned about the upward pressure on the cost of running a car, not least the rising cost of insurance. That there over 800,000 small injury claims registered through the Ministry of Justice small claims track last year, of which 750,000 are estimated to be whiplash injury claims is, frankly, shocking. It’s little wonder that the UK is shamefully regarded as the whiplash capital of the world.’
LISAs
The new Lifetime Individual Savings Accounts should carry a series of warnings to consumers, according to the Financial Conduct Authority.
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