One major motor insurance provider in the UK has recently said that it’s not the insurance industry’s fault that premium prices have risen to ridiculously high levels lately, instead laying the blame squarely on the shoulders of the whiplash injury claim industry.
The AA says that the average comprehensive insurance policy now costs around £1,132 for a year of cover, though this figure is oftentimes much higher for younger motorists – especially young men, who can sometimes pay more than £3,000 – and has placed a serious strain on the finances of the average Brit. However, Axa UK’s head, Paul Evans, insists that personal injury solicitors and claims management companies are to blame, as the ‘parasites’ seek to encourage fraudulent claims in order to rack up massive legal bills that add hundreds of millions to insurance claim payouts – with the lion’s share of the money going not to the injured party but to line the pockets of greedy firms.
Whiplash claims have been a major source of fraud, as industry experts say that, between compensation payouts and legal fees, whiplash injuries cost the insurance industry £2 billion every year. Even solicitors themselves have taken issue with disreputable individuals bringing spurious claims, with many stating that these fraudsters are ruining the reputation of responsible legal professionals by making 1,500 whiplash claims on a daily basis – many of which are of questionable validity – and earning the UK the dubious honour of being crowned ‘the whiplash capital of Europe.’
Whiplash claims figures have rocketed by 70 per cent from 2005 to 2010. While this may leave you thinking that the number of accidents that have been occurring must have gone up precipitously as well, this simply isn’t the case: the number of road traffic accidents that occurred in the same period of time actually dropped by 23 per cent, official figures say.