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Increase in whiplash compensation claims

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According to the Institute and Faculty of Actuaries [an organisation representing UK actuaries nationwide] , the number of people claiming compensation for whiplash is rising – despite the fact that the number of people actually injured on the roads has fallen. The Institute blame this on a general cultural change towards claiming compensation.

In their report which was based on data they have taken over the last 12 months from motor insurers, along with police data on road traffic accidents, they estimate that the increase in the number of compensation claims being made, would cost UK insurers around an additional £400m. They estimate that the average claim for compensation payments for a minor road traffic injury was £8,400.

According to the Institute, part of the blame for the increase in claims for minor whiplash was directly down to the behaviour of claims management companies. As readers of this blog will be well aware of my attitude many claims management companies [click here for one of my earlier blogs on the subject]. This latest report seems to add further evidence at the damaging effect on UK economy of many CMC’s. The sooner that many rogue or dishonest claims management companies are dealt with properly, the better.

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