Personal Injury Claims And Whiplash Compensation Culture Insurance bosses back Cameron

Downing Street have said that due to the cut in personal injury legal fees that the insurance industry have said to co-operate and pass on savings to customers.
The Prime Minister David Cameron has criticised the compensation culture and has said to lower the now current fee of £1,200 for lawyers for the small personal injury claims.
All savings will now be passed on to the public, insurance bosses have said they will commit to this. All the firms have also said they will take more health and safety claims rather than jus paying out.

Businesses are concerned that they are being forced to go far beyond legal minimums to make sure they have secure insurance cover.

The insurance industry have said that they will provide a description and guidelines explaining exactly what employers must do and what they don’t need to do to comply with health and safety laws. This is to help with medium size and small companies.

Whiplash claims and the price of compensation a year which costs about £2 billion, the insurance companies and the government are now going to work together so they can try and lower the cost of these claims. Accident management companies and no win no fee solicitors have been making a lot of money.

There are about 1,500 whiplash claims per day and these are mostly minor accidents, because of this its costing an extra £90 per year to the average insurance bill. Downing street are said to be concerned about this, number 10 are hoping to make it a bit harder for people to put claims in if they are only minor claims by bringing out a speed threshold and requiring better medical evidence.

I am determined to sort this damaged compensation culture which has been making the cost of premiums rise. I want to free up businesses from the stranglehold of health and safety red tape and look at ways we can bring the costs down said Mr Cameron.

He also said that the insurance industry plays a really important part in all of our lives, it is here to help us when we need it most and our at our most vulnerable. I want to make sure that we all play are part and do what we can to help people through this very hard time.

Urgent action is needed said Otto Thoresen. He is the director general of the Association of British Insurers he attended the summit.

He said that the price of motor insurance reflects on our society were it has got very easy to make spurious and exaggerated personal injury claims. Excessive legal costs can outstrip compensation awards and that tolerates the high levels of death and very serious injuries that involve young drivers and their passengers.

We must tackle the issues with the surge for whiplash claims, by doing this we will bring down the motor premiums. The insurers are committed to doing this, we also need help from the government.