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The government will be implementing a fixed rate which will drastically reduce the cost of medical reports for whiplash, to crack down on the number of fraudulent claims.
Currently, an initial medical report for a whiplash claim can cost up to £700, but the proposed cut will see it reduce to £180. It is hoped that the change will stop experts being incentivised to encourage claimants to seek unnecessary treatment.
It’s reported that there are over 500,000 whiplash claims made each year, with many thought to be fraudulent or deeply exaggerated. Justice Secretary Chris Grayling said, “Honest drivers have been bearing the cost of a system that has been open to abuse and it is time for a change.” Fake claims are one of the main reasons for the rise in drivers’ premiums, costing an average of £90 a year.
These new measures are aimed at tackling the rise in bogus claims by focusing on companies that encourage individuals to seek compensation. Grayling added “…across the claims process we should have a structure that makes sure that people are paid for what they really do, that claims that go through are genuine and that we drive out some of the practices that are inflating insurance premiums unnecessarily.”
Earlier this year, changes in legislation meant that courts now have the power to throw out any claim for compensation where claimants have been partly or fully dishonest.
These new rules are set to be introduced in October of this year.