Government Proposes Clampdown on Whiplash Claims

Plans are afoot to cut compensation for whiplash victims across England and Wales – a move that could reduce the car insurance premiums for millions of motorists.

Whiplash compensation claims have risen by 50% over the past decade, costing insurance companies around £1bn a year. Now, ministers are looking at capping compensation amounts or scrapping it altogether.

Currently the average whiplash payout is £1,850, but ministers are considering capping the amount at just £425. Another plan could be to scrap cash payouts altogether.

Andrew Morris, operations director at insurance company Aviva, said that although the number of road accidents in Britain had fallen by almost 40% since 2000, the number of injury claims had risen by 90%. He said:

"All of that suggests that actually there is something fundamentally wrong with our compensation system. In the UK, almost 80% of every injury claim that we see relates to whiplash. Now in France, by comparison, it is just 3%."

The RAC's insurance director, Mark Godfrey, said the plan was "broadly welcome," but added:

"It is crucial that motorists that have genuine claims are not disadvantaged, which is why we look forward to seeing the finer detail of the government's proposals."

Any changes will require an act of Parliament, so are likely to be many months away.

If you have been injured on the roads and somebody else was to blame, contact our injury solicitors to see if you have a claim. Speak to us in confidence on 0203 206 1133.

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Whiplash Solicitors