Personal Injury ‘Compensation culture’ costs Motorists £118
According to a report published by Aviva, personal claims are adding an astonishing £118 to every motor insurance premium.
Claims made for whiplash, a condition which is notoriously difficult to diagnose or dismiss, have continued to increase rapidly as part of what is considered a ‘compensation culture’. While this does include genuine claims there has also been a rise in fraudulent activity, whereby collisions are staged and passengers involved in the collision make false claims, costing insurance companies millions, and raising the price of the standard motor insurance policy.
Aviva has said that this has led to the vast majority of motorists calling to see the back of this PI (Personal Injury) culture, with 94pc blaming the involvement of third party claims companies on the increase in premiums.
Aviva’s report, named ‘Road to Reform: Reducing Motor Premiums by Reforming the Claims Process’ will be launched ahead of March, and highlights the companies aim to improve the PI claims system, that has led to a rise of 80pc in insurance premiums since 2008.
Dominic Clayden, claims director at Aviva said: “Our primary concerns are that injured parties receive care and compensation as quickly as possible and that all motorists benefit from a reduction in excessive costs that have built up from claims over the last few years”.
The research from Aviva has demonstrated a strong link between PI claims and increased motor premiums, with 93pc of motorists blaming whiplash claims specifically for the increase in premiums, while 95pc say that unnecessary claims are behind the hike in premiums.
Please see the whole report available from Aviva which you can also download.
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