Thursday, 7 January 2016
Welcome the Tory governments support for Jack Straws Bill on curtailing whiplash claims
I welcome the Tory governments intention set out in the Autumn Statement to bring forward Jack Straws idea (a Bill I was delighted t
o co-sign) which will reduce motorists premiums in East Lancashire but curtailing whip lash claims. BB postcodes cover all Hyndburn and taxi drivers have been particularly hit by the costs of rising claims.
The Government (and that private member’s bill that Jack Straw brought in the last parliament – which I co-signed) will reduce the number of ‘ambulance chasing’ claims which push up insurance costs by increasing from £1,000 to £5,000 the small claims limit in road traffic injury claims.
The purpose of raising the limit to £5000 is to reduce the number of people who can bring claims forward – essentially pricing smaller whiplash claims out of the market.
Lawyers don’t want it to happen because they will lose work, but the lawyers are arguing that it is a pointless change because payouts for smaller claims have fallen since 2010 anyway. I would argue that they wouldn’t be opposing it if there wasn’t something in it that would reduce lawyers’ incomes.
Insurance costs are worked out – in part – based on the postcode of the applicant. So people living in certain postcodes – particularly BB ones – end up paying more, a lot more in this area because of whiplash claims.
The Daily Mail’s This Is Money: