The biggest worry for motorists in the UK is being involved in an accident. Other than the physical injuries that might occur, another serious concern for drivers comes in the form of the financial implications. No one wants to pay up large sums of money especially if they weren’t at fault and on top of that people don’t want to be paying fees for motorists who make false claims about being injured.
The Government has recognised that ‘false’ injury claims are on the rise and are making moves to clamp down on these fraudsters. They are set to introduce a new set of measures recommended by the Insurance Taskfoce (IFT) to help tackle the situation.
One of the main recommendations from IFT is to encourage insurance companies to share data and a collaboration between some of the main regulatory bodies to help pinpoint individuals who are active fraudsters.
Research undertaken by the Insurance Fraud Bureau has claimed that Cash for Crash scams, which involve drivers deliberately crashing their cars in the hope of financial reward, cost drivers within the UK a staggering £336 million 2015. Suggestions from the IFT would look to cut this figure dramatically through a more transparent and communicative industry which will in turn enable insurance companies to pinpoint those making fraudulent claims.
On top of deliberately crashing their vehicles, another huge fraud market is through the claiming of non-existent whiplash injuries. Such cases as this costs the UK in excess of £2billion a year, and this cost is then passed onto the average driver like you or I, costing us £90 per year on average on top of our insurance policy. The Government has already moved to prevent such claims including revoking the right to damages for soft tissue injuries and have made the upper limit for small claims court increase by 500% from £1,000 to £5,000.
The IFT states that more needs to be done, and have asked the insurance industry to not settle for cash compensation and be more robust in their defending claims, whilst combining this with stricter laws that can reduce the amount of scams.
All this can only mean good news for law abiding drivers who, hopefully, can rest assured that the Government are hot on the heels of would-be fraudsters ensuring you won’t be fleeced for money in the result of a crash, but also hopefully bring down the premium on your annual insurance policy!