- Over 75% of personal injury claims in the UK are as a result of ‘whiplash’
- Claims Management Companies pester drivers to make a claim, some making contact within minutes of an incident occurring
- The Civil Liability Bill will crack down on fraudulent whiplash claims and is expected to reduce motor insurance premiums by about £35 per year
According to research published by LV=, Britain is now the "whiplash capital of the world", with whiplash (a neck sprain or strain) making up 78% of all personal injury claims in the UK.
It's believed that over 1,000 whiplash claims are submitted every day in Britain, far exceeding the percentage of whiplash claims in Europe (48%) and the US (65%).
Liverpool holds the record for the highest number of personal injury claims from road incidents, with over 55% of Merseyside motorists involved in a shunt, filing for compensation in the last year, according to figures released by the Institute and Faculty of Actuaries in December 2015.
LV='s research also revealed that claims management companies persistently encourage drivers to make a personal injury claim, with some companies contacting drivers five or six times following a car incident.
Two thirds (67%) of drivers who had to go to A&E following an incident were approached by someone who said they should make a compensation claim.
Worryingly, 59% of those contacted by a claims management company said they felt pressured into progressing a claim.
However, in the Queen's Speech to government, plans were unveiled to crack down on minor whiplash claims, through the introduction of the Civil Liability Bill.
The Bill will ban offers to settle claims without the support of medical evidence and introduce a new fixed tariff of compensation for whiplash injuries with a duration of up to 2 years.
If the government's campaign to clamp down on fraudulent claims is successful, this could mean drivers could benefit from cheaper car insurance prices in the future.
Steve Treloar, General Insurance Managing Director at LV=, responded to the announcement of the new Civil Liability Bill to tackle whiplash: "The UK is the world capital for whiplash claims and with fraudulent claims adding around £40 to the average car insurance policy, we have to clamp down on the compensation culture that is rife in this country. The original proposals from Government on tackling whiplash didn't go as far as we felt was necessary so we're pleased that they are now committing to making the changes that we've long been asking for. Ultimately, we need a fair system that works for everyone and in light of these new plans we're hopeful of getting that."