New Civil Liability Bill looks to cut ‘easy payday’ whiplash claims and lower insurance costs
Proposed legislation could potentially save the average driver £35 on their insurance premium
Drivers are set to benefit thanks to proposed legislation aimed at cutting the high number of whiplash-related insurance claims.
The Civil Liability Bill, announced in the Queen’s Speech last June and unveiled today by justice secretary David Gauke, plans to clamp down on the claims and in doing so reduce premiums for motorists.
The changes could see the average driver save £35 on their annual car insurance premium, as the crackdown would generate around £1 billion in savings for insurers, which would then be passed on to policy holders.
Gauke said: “The number of whiplash claims has been too high for too long, and is symptomatic of a wider compensation culture.
“We are putting this right through this important legislation, ensuring whiplash claims are no longer an easy payday and that money can be put back in the pockets of millions of law-abiding motorists.”
If the bill is passed, it would set fixed amounts of compensation and ban the practice of seeking or offering to settle whiplash claims without medical evidence.
Road traffic accident-related personal injury claims are 50 per cent higher now than a decade ago, although road traffic accidents themselves have fallen by 11 per cent over the past five years.
The way that the personal injury discount rate for serious injuries is calculated is also being looked at to give a more balanced approach to compensation. The last review – in February 2017 – saw the size of damages increase dramatically.
The bill, which gets its first reading in Parliament tomorrow, has been praised by the Association of British Insurers (ABI), with its director general, Huw Evans, saying: “If passed, these proposals would be great news for motorists. People and businesses are paying more for their motor insurance than ever before and we need changes to the law to tackle some of the root causes.
“Soft tissue injury claims have been rising year on year since 2014 as cold-calling claims firms have thrived, driving up the cost of insurance.”
