Lincoln’s Member of Parliament and campaigner against fraudulent whiplash claims, Karl McCartney MP, has echoed LV=’s call for a quick and comprehensive response to the latest findings from LV= Motor Insurance which suggests that the UK is world capital for whiplash claims – beating the USA.
In the UK, nearly four out of five (78%) injury claims are due to whiplash, far higher than 65% in the USA2.
Karl McCartney MP, said: “I welcome the extremely important work LV= has undertaken on this issue and it continues their long campaign against the behaviour of those claims management companies and solicitors and law firms who are pro-actively and disingenuously driving the rise in whiplash claims and associated costs. Of course, not all are behaving in this way, but the fact is a number of solicitors and law firms are far too willing to follow sharp practice by pursuing and processing fraudulent claims. They are, quite frankly, playing the system.
“Insurance firms, including some of the largest ones, are also complicit in allowing this practice to continue and flourish by paying large sums to claimants, rather than contest vague and likely fraudulent claims, and passing the cost of such claims onto consumers in increased premiums. This behaviour outrageously flouts the spirit of the law and commercial propriety, and detrimentally affects those who have genuine compensation claims.
“The reforms my Government has introduced to clampdown on both uninsured drivers and fraudulent claims should have seen insurance premiums fall for law abiding drivers. Instead we have seen premiums continually rise as the big insurance companies protect their monopoly and fiscal position, whilst declaring billions of pounds of profits each year.
“So, yes, we do need a quick and comprehensive response to this situation.
“The insurance market must be more transparent and open, and must put an end to protectionism. We also need new and smaller operators who will ensure consumers and policyholders are protected and, by doing so, force reform onto their larger competitors and the market as a whole.”
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For further information, please contact Karl McCartney MP at [email protected] / 020 7219 7221.