Rabu, 04 Juli 2012

Whiplash Britain: Personal injury claims rise 18% in a year

Whiplash Britain: Personal injury claims rise 18% in a year

By Lee Boyce

PUBLISHED: 05:29 EST, 4 July 2012 | UPDATED: 11:12 EST, 4 July 2012

The number of personal injury claims on Britain’s roads last year went up a staggering 18 per cent according to statistics, despite a fall in accidents and car damage claims.

Figures from the annual report by the Institute and Faculty of Actuaries found that UK claim rates in certain hotspots in the North West have overtaken some of the worst areas in litigation-crazy US.

It also showed that the number of car accidents giving rise to third party claims fell 11 per cent between 2010 and 2011. The Institute said that this was largely down to motorists driving less due to high petrol costs and cutting out non-essential journeys.

Woman who has just had a prang with another car

But despite this, the number of Britons who claim to be suffering from whiplash or other injuries has soared by 18 per cent in the same period. This is the highest rise ever recorded.

Its report also found that payouts are up by an average of nine per cent.

The research also found a direct correlation between where claims management companies operate and where the highest number of claims are made.

The maps below show where the most third party injury claims have been made and where the highest frequency of management firms are located.

Claims: These are the hotspots for third party injury claims

Claims: These are the hotspots for third party injury claims

Firms: Hotspots of compensation claim firms

Firms: Hotspots of compensation claim firms

The year-on-year rise in bodily-injury claims is adding about £400million to insurers' costs last year, the report added.

And this means that drivers are seeing their premiums rise. According to the confused.com/Towers Watson Index, premiums have gone up an eye-watering 61 per cent for motorists in just five years.

The whiplash hotspots are where claims firms are

Most bodily injury claims last year came from people in north west England, with this area overtaking the worst regions of the US in terms of the proportion of accidents involving a bodily-injury claim.

Whiplash ‘hotspots’ include cities such as Liverpool, Manchester, Birmingham and parts of East London.

On the flipside, injury claim rates were lowest in Aberdeen, Cambridge, Dorchester, Exeter and Kingston upon Thames, the research found.

Scotland, with a different legal system, remained the region with the least amount of third party claims.

With legislation expected soon affecting the way claims companies do business, the big rise in bodily-injury claims last year may have been ‘a last hurrah’, David Brown, the chairman of the Institute has said.

He added: ‘The increase in costs to insurers because of the rise in bodily-injury claims is likely to result in a rise in motor insurance premiums for drivers.

‘The clear correlation between claims management companies' office locations and the 'hotspots' for bodily injury claims suggests that the two are interlinked.

‘We expect to see legislation coming soon which will affect the way in which claims management companies do business, which may account for the significant increase seen in 2011. It is possible this is a last hurrah.

‘In 2010 the worst areas of the UK overtook the worst areas of the US in terms of the proportion of accidents involving bodily injury. It is disappointing to see this trend not only continue, but worsen in all regions with the exception of Scotland.’

HOW TO GET CHEAPER CAR INSURANCE

One in three consumers is paying over the odds for car insurance, according to the RAC.

Nearly half of Brits do not bother to seek a number of quotes and one in four renew their car cover instantly, without using the opportunity to save hundreds of pounds.

So, given that premiums are rising steadily, it it is well worthwhile following our ten steps to lower premiums. Read the full guide.

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

The comments below have been moderated in advance.

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My car was slightly damaged while parked in a shopping area car park, I reported the incident to my insurer, and paid £250 to have the damage repaired, when it came time to renew my insurance my premium had risen by £130, when I got in touch with the insurerers about it and told them again it was not my fault , they told me my premium had gone up because I had reported it, I left that company Saga, and took my house insurance away as well , and any travel insurance I use too, I felt I had been made a victim twice once by the person who damaged my car and by Saga who tried to rip me off.The whole car insurance industry needs investigating .

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Insurance companies sell details of accidents to no win no fee lawyers. This increases our policies but we still have to pay, the insurance companies make money from everyone and the scum, sorry, the no win no fee lawyers make money. Losers are the policy holders.....

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If the insurance companies can prove that a number of false claims are being made for whiplash they should make sure these people can never get any type of insurance cover again I am sure this would be a good help in stopping false claims.

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This just goes to show how Insurance Companies have refined the art of selling accident details to perfection. It is so heart warming to know that they are good at something other than bumping up insurance policies for the affected drivers.?

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My Daughter at Uni in Liverpool had an incident. A 13 year old lad ran out from behind a parked van onto the road and hit her car. The damage to her car was to the passenger door, work that one out. She was in traffic and moving at about 15 MPH. The lad had to go to hospital with a cracked leg and was out in a few hours but was in plaster for several weeks. The incident was on CCTV, and witnessed by a police officer in the car behind. Nine months later he claimed saying she had hit him. The insurance company collected all the information including the CCTV and told my daughter that they would take it to court, if the lad lost then she could then claim for her excess etc from him as he would be legally guilty of causing the accident. Guess what the insurance company decided to give the lad 1000 pounds as it was cheaper than taking the case to court. With behaviour like that the example has been set, claim anyway, you will probably get away with it.

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I had an accident in 2007 I admit it was my fault. I clear round a bout and I bumped the person in front by rolling into him. No damage to my car and a cracked bumper on his. For some reason his no win no fee solicitor sent me detals of his injuries. Whiplash, damaged thumb and the injuries stopped him working. Considering the year before somone hit be from behind at 30 mph and wrote of my car but I was not injuried at all. I told the insurance company he was playing the system they are not interested; thats why these lying cheats get away from it.

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The World might be a lot better place without lawyers, especially the ones who become politicians.

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Loads of money they just can help them selfs we all know somone that been at it so its about time all the loopholes were shut remember fraud is still a crime

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I am willing to bet all my savings on the fact that these hot spot insurance claims will match high welfare dependency areas...Liverpool is so obviously going to be top. Any excuse to try and claim they do. In my hotel one Liverpudlian lady tripped over her own shoes - as seen on our CCTV - and still a no win no fee pushed it all the way to court. Only our insistence the insurance company don't crumble to make life easy that she got nothing

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I had a minor shunt from behind (get your minds out of the gutter) about two years ago, not my fault and no injury claims made. I still get texts from claims companies, the last was dated 2nd July asking me to reply CONFIRM to get details of how much I'm due. The first text I got was within five minutes of the incident. I thought it was an offence to insight a crime, which is what a false claim is? The insurance companies are operating one big scam and paying for it through sky-high premiums. How else if a car devalues at say 15% a year can premiums still go up?

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