Committee urges new law to tackle rising whiplash claims
MPs have called for legislation to curb the rising number of whiplash claims in the event the Jackson reforms fail to reduce them.
In their second report on the rising cost of car insurance, published last week, MPs on the transport select committee said: “The rise in personal injury claims, most of which are for whiplash injuries, is the main reason for the rise in premiums.
“It is difficult to diagnose whiplash objectively and this has deterred insurers from defending claims in court. We recommend that the bar to receiving compensation in whiplash cases should be raised.”
The MPs noted that the government is implementing Lord Justice Jackson’s reforms, which could “reduce the money in the system and encourage insurers to defend claims more vigorously”.
However, they continued: “If the number of whiplash claims does not fall significantly as a result, there would in our view be a strong case to consider primary legislation to require objective evidence of a whiplash injury, or of the injury having a significant effect on the claimant’s life, before compensation was paid.”
About 70% of motor-insurance personal-injury claims involve whiplash.
An Association of Personal Injury Lawyers spokesperson says: “Whiplash injuries can be extremely painful and can often linger, leaving some people with chronic conditions.
“It must be remembered that the burden of proof lies with the victim. The defendant has every right, and opportunity, to challenge medical opinion if it is thought to be wrong.
“Any measures which risk blocking people from making valid claims will leave injury victims and taxpayers effectively subsidising the insurance companies who have already accepted our premiums.”
The committee called for increased transparency in regard to referral fees. It also recommended that the government provide them with updates on the timetable for its project to enable insurance firms to gain access in real-time to the DVLA database and its review of the penalties associated with motoring without insurance.
