Aviva Insurance, an insurer partner of Boswell Aftermarket, is on the trail to reduce the annual bill presented by whiplash claims by the UK motor market. Currently the annual bill for whiplash injuries alone stands at a staggering £2.5bn which adds around £93 to every motorist’s annual premium on their own car. The issue appears to be following a negative trend and of all motor claims where personal injury is involved, 80% of them have some element of whiplash injury attached to them. Compare that to some of our European neighbours and the results are dramatically different. In France the number is on 3% of claims and in Germany it’s 47% and consequently the average motor insurance premium in those countries is between 30% and 50% lower!
The insurance industry has already taken some steps to control the cost of the annual claims bills. Some measures were implemented back in 2005 which saw the number of motor claims reduce by 30% in the period to the end of 2013. However, in that same timeframe the number of personal injury claims INCREASED by 62% and the cost of bodily injury claims rose by 73%. Part of this issue is the personal injury lawyers that advertise endlessly on daytime TV and send out the random text messages that most of us will have received at some point, but alongside this, organised fraud gangs play their part. Between 2013 and 2014 there was a 21% rise in organised fraudulent claims – the “crash for cash” scenario that has had recent coverage on the news.
Aviva is using its research to lobby the new government to take steps to assist the insurance industry to fight back and pass claims cost reductions back to the motorist. It’s suggestions include:
- A shorter time-limit to report whiplash claims – moving from three years to one year
- Provision of medical treatment to solve whiplash injuries, rather than cash compensation
- Raise the threshold for engagement of lawyers so they can only get involved where the estimated compensation exceeds £5000 (currently it is only £1000)
In the meantime, here’s some useful advice if you’re involved in an accident to help protect you and your insurer from dubious claims for injury:
1) Notify your insurer/insurance broker as early as possible so that they can be ready for any approaches from third parties (40% of solicitor notifications have not previously been notified to the insurer)
2) If it’s an employee of your that’s at fault, allow your broker or insurer to discuss directly with the driver to get their perspective of the incident
3) Obtain evidence, including photographic evidence of the scene of the accident, the post-impact vehicle positions and the damage to the vehicles plus a record of the number of occupants and any witness details you can get hold of