Whiplash: Fact or Fiction

Published: 13/01/2012

Comments from senior partner, Simon Cottrell, regarding the Transport Committee’s follow up report on the cost of motor insurance:

"Clearly, there are problems within the industry and I welcome the fact the Government is looking into it, but today’s report raises a key question.

“There is a deafening silence as to how much the insurance industry would be prepared to reduce premiums by if the Government were to uphold some or all of the recommendations put forward.

“The sector is claiming that premiums have risen as a result of whiplash injuries and fraudulent claims, but the reality is that the cost of insurance has rocketed as a consequence of many factors. Premiums have increased due to the need for insurance companies to make profits in a depressed market, extremely large compensation payouts have hit the sector hard, in addition to price comparison sites driving down profit margins as insurance companies have had to compete fiercely with rivals for business.

“The industry is continuing to peddle the illusion that whiplash claims is the only root of spiralling premiums which is absurd. Whiplash injuries are soft tissue injury and there is no absolute way to diagnose the severity of it. It is offensive of Jack Straw to say that they are assessed by third rate doctors.

“I don’t support the practice of making unsolicited calls to would-be customers, nor do I tolerate fraudulent claims. If referral fees are banned payments will continue to be made between parties under a different name. Nobody has the stomach to monitor this.”

Content correct at time of publication