According to Lord Hunt of Wirral, victims of reckless or negligent driving should have their treatment funded by insurers rather than a large cash out payment in a bid to end the UK’s “whiplash culture.”
The suggested amendment to the Social Action, Responsibility and Heroism Bill from the former Cabinet minister and lawyer Lord Hunt proposed that courts stopped damages for minor injuries and instead paid out for treatment for the victim if the driver that had been found guilty of negligence covered treatment for the victim.
The Tory peers proposal would cover cases where a claimant had suffered “a loss of function of 15 per cent or less”.and focus on the recovery of the victim.
Lower Premiums
Under proposals suggested by Lord Hunt, insurance premiums could be lowered for drivers with rates falling by at least £30 for all drivers, as it would result in treating injuries rather than compensating for damages.
Research presented in the committee stage of the bill showed that 94% of accident claims in the UK claimed for minor whiplash when involved in a vehicle incident. In comparison, research indicated that this number was in stark contrast to those in Europe, with whiplash claims making just 3% of claims in France.
The amendments to the bill would also be crucial in targeting the crash for cash scams which according to insurers Aviva, have risen by over 50% in the last year.
Crash for Cash
Lord Hunt of Wirral said: “There has been a significant increase in the number of so-called crash for cash scams faced by insurers.
“Particularly troubling is the increase in the number of induced accidents where fraudsters deliberately target innocent motorists to cause an accident.”
He added: “”We have a whiplash culture because we have not taken the same stance as a society that other European countries have taken to avoid these claims in the first place.
“In other countries you have to prove a level or percentage of disability before you can even make a claim.”
Despite plans being in place to attempt to combat crash for cash, Lord Beecham said that the reforms proposed by Lord Hunt were necessary to deal with the “abuses of the current system” but in the long term would fail to make a lasting impact on the insurance market.
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