RMI Bodyshops (NAB & VBRA), the UK’s trade association for vehicle repairers, has raised their concerns following today’s announcement that proposals to reform how the insurance industry deals with claims for whiplash injuries have been put on hold by the government.
The UK has one of the worst whiplash records in the world and on average cost the country £2 billion a year.
The reforms which were introduced by the former chancellor of the exchequer George Osborne in the 2015 Autumn Statement, outlined proposals for the compensation for minor motor accidents, and would remove over £1billion from the cost of providing motor insurance – therefore saving motorists an average of £40 to £50 per year off their insurance bills.
RMI Bodyshop director Jason Moseley comments, “We are very disappointed to see that the Ministry of Justice feel that this is not a priority and has decided to delay this from their agenda. The bodyshop repair industry works closely with insurers as important supply chain partners, and anything that prevents a healthy and accountable insurance market is negative and must be addressed.
“There are also other ramifications for our body repair members and consumers, through the continued commoditisation of personal data by claims management companies. A practice that is at very best opaque and serves to harm the industry if action is not taken by removing the personal injury claim incentive.
“We urge the government to press ahead with the original proposals and release the consultation as soon as possible as the delay is costing motorist’s money, with insurance premiums up 1 per cent over the past year.”