Driving Premiums Down: Fraud And The Cost Of Motor Insurance
HC 285, First report of Session 2014-15 - Report, Together with Formal Minutes Relating to the Report
- House of Commons - Transport Committee
- TSO (The Stationery Office)
The report 'Driving Premiums Down: Fraud And The Cost Of Motor Insurance (HC 285)' reviews the Government's plans to tackle fraudulent and exaggerated motor insurance claims, particularly for whiplash injuries.
It is the Transport Committee's fourth report on the cost of motor insurance and although premiums are now falling, aspects of the market remain dysfunctional and have encouraged criminality to take root. Further action is still required to tackle fraud whilst protecting genuine claimants.
The Government must prohibit insurers from settling whiplash claims before the claimant has undergone a medical examination. On issues of court procedure and medical panels the Committee endorses the Government's intention to require courts to strike out 'dishonest' insurance claims (for example, those involving gross exaggeration), but cautions against hasty legislation due to the complex legal implications.
The report calls for data sharing about potentially fraudulent claims between insurers and claimant solicitors to be made compulsory, rather than voluntary (as currently proposed); and the Government should oversee funding arrangements for the police Insurance Fraud Enforcement Department, to make sure that this unit, currently funded directly by the insurance industry, has a long-term future.
Government proposals for independent medical assessments are welcomed but more work is required on implementation. The Committee recommends that the Government press the Solicitors Regulation Authority to stop some solicitors from playing the system to maximise their income - by commissioning unnecessary psychological evaluations.
|Format||Paperback||Published||04 Jul 2014|
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