I'm sure many will applaud the government position on Whiplash claims in that money will not be recoverable for the same if the chancellor has his way. But lets stop and think about the bigger picture if and when this becomes part of the legal landscape. What the government is saying is that you could be injured through no fault of your own. Anyone can drive into your car, and cause you injury. Because this is a soft tissue injury you will not received one penny in compensation for the pain and suffering.
We know the allegation raised against some in that fraudulent claims being made. However what is happening is the government intend to punish all instead of the few. What will the result be? Millions in savings for insurers. The savings will grossly outweigh the previous cost of paying for suspicious claims.
The real loser will be the innocent victim with a serious injury. Perhaps the £50 this year in your pocket sounds good, but if you had a life long injury, would you really have preferred that the law stay as it was?
Please also remember that insurers don't just do motor insurance, and the current floods will affect all premiums over the next few years.
Leading motor insurers have promised to pass on to customers 100% of the savings they make from curbs on whiplash claims, the government announced today. A Ministry of Justice press release said the move would cut annual insurance premiums by around £50. Advertisement According to the statement, the agreement to pass on savings follows 'a recent roundtable meeting' to discuss the announcement in last month's autumn statement that the government would end the right to cash compensation for minor whiplash injuries and raise the upper limit for personal injury claims in the small claims track from £1,000 to £5,000. The measures will be introduced 'as soon as possible', the ministry said. Detail of the measures, which are opposed by the Law Society, will be consulted on early next year.