Whiplash claims are a pain in the neck, says MP (From Worcester News)

Whiplash claims are a pain in the neck, says MP

5:48pm Tuesday 17th January 2012 in News By Tarik Al Rasheed

Whiplash claims are a pain in the neck, says MP

AS increased whiplash claims are blamed for spiralling costs in car insurance, Worcester’s MP is calling for a crackdown on the compensation payouts that are proving a real pain in the neck for motorists.

Although the number of casualties in road accidents has fallen by almost 25 per cent since 2005, the number of insurance injury claims has doubled, the Government’s transport committee announced this week.

Its report, which says about 70 per cent of all claims arise from whiplash injuries, comes as comparison site Confused.com announced a 4.9 per cent increase in the cost of a comprehensive car insurance policy over the last 12 months.

Although drivers in Worcester itself have escaped fairly lightly – the average cost of a policy rose by just 0.8 per cent to £625 – figures for the West Midlands show a 9.6 per cent increase, sending the average price of a policy rocketing to £1,047. The committee’s report is calling on ministers to change the law to make it harder for people to make uncontested whiplash injury claims.

Worcester MP Robin Walker said he backed any crackdown on a problem that is “part of a broader something-for-nothing culture”. He said: “I think it is absolutely right that we try and clamp down on this claims culture, especially some of the worrying given evidence that has been pulled up by the committee over false whiplash claims.

“My car is registered in Worcester, I have seen my insurance go up a great deal and I have also heard from many constituents who are concerned.”

However, a local personal injury claims specialist says that while he backs action to stamp out any genuinely fraudulent claims, they are not to blame for premiums rocketing. Steven Hinchliffe, of Hinchliffes Solicitors, instead blames the struggling economy for the growth in injury claims.

“The recession means that fewer people can afford to keep a car on the road, and so there are fewer accidents being recorded. But for the same reason, people who a few years ago might not have bothered to seek compensation are finding themselves short of funds and so deciding to make a claim,” he said.

“The economy is also the reason insurance premiums have gone up. Interest rates are low and so insurance companies are not getting the same level of investment income. That means they have had to increase premiums to motorists to cover the shortfall. Fraudulent claims do exist and are something that must be stamped out, but they are a tiny, tiny percentage.”