RMI Bodyshops (NAB & VBRA), the UK’s trade association for vehicle repairers, is encouraged to see that the Ministry of Justice has launched a consultation today on proposals which will reduce the unacceptably high number of whiplash claims, and allow insurers to cut premiums.
The news means that millions of motorists could see their car insurance premiums cut by around £40 a year as a result. Whiplash claims have risen by 50 per cent over the last decade, costing insurance companies about £1bn a year.
The consultation outlines plans to scrap the right to compensation or put a cap of £425 on the amount people can claim for minor whiplash injuries upon proof of a medical report. Currently the average pay-out cut is £1,850.
RMI Bodyshop director Jason Moseley comments, “We welcome the government’s commitment to tackle the whiplash epidemic. The reforms will crack down on minor, exaggerated and fraudulent claims.
“We will be responding to the consultation, and seeking a meeting with government to outline our views.”
Category: UK News