Insurers want more despite drop in accident claims
The number of accident claims has reduced by 14 per cent, according to statistics published this week.
According to figures the number of claims notification forms (CNF) created in November 2013 was 67,037 – 14 per cent lower than twelve months prior.
Coincidently motor insurance premiums have also declined during this period; the Association of British Insurers (ABI) confirming a drop of 9 per cent during 2013. In monetary terms the average insurance premium has decreased from £406 to £370.
However despite this the insurance industry is calling for further reforms in the personal injury sector. James Dalton is the Head of Motor Insurance of the ABI:
“The 9 per cent fall in the average comprehensive motor premium last year shows that insurers are fulfilling the commitment they made to the government to pass savings from changes to the civil litigation system to heard-pressed motorists through lower cost car insurance premiums.
“But more can be done to get premiums even lower which is why the government needs to press ahead with tackling exaggerated and fraudulent whiplash claims which honest motorists are sick of paying for through their insurance premiums.”
Whilst everyone involved in accident claims industry share the same aim of driving fraudulent claims out of the market, it is vital these measures do not come at the expense of true injury victims. Personal Injury solicitor, Kevin Smith, is concerned:
“Last year’s changes to the personal injury market have stretched the industry to the max; fixed fees have now been cut by more than 50 per cent. An increasing number of personal injury firms have been forced to close as a result while others can only cover their costs by taking a proportion of their client’s damages. In other words accident victims are losing out.
“Whilst we are in full support of eradicating fraud from the industry, we have been steadfast in our belief that this cannot come at the expense of victims. If the industry is squeezed anymore this is the likeliest outcome.”
Content correct at time of publication