REGULAR
A Fair Crack Of The Whip
Bogus whiplash compensation claims can drive up the costs of UK motor insurance. James Shaw of Darwin Clayton outlines the new rules intended to curb those gaming the system, and how you can help collar the culprits.
Whether or not you or your company drivers have been involved in an accident recently, you’re bound to be feeling the impact of whiplash. The financial impact, that is.
The UK has the highest whiplash costs in Europe and 20% of every motor insurance premium we pay is related to the costs of settling whiplash injury claims. Although motor premiums are still rising, some relief may be at hand – at least, as far as this large cost component is concerned.
Legal reforms designed to clamp down on false or exaggerated claims for whiplash have been introduced. They have come in two phases, following consultations by the Ministry of Justice.
In October last year, the first wave came into force. There were five key changes relating the role of medical experts and their evidence:
• The cost of obtaining an initial medical report was fixed at £180.
• Medical evidence should now be limited to a single report unless there are clear grounds why further investigation is required.
• Insurers are discouraged from settling whiplash claims in the absence of a medical report confirming the claimant’s injury.
• Reporting experts are prohibited from treating the claimant as well.
• Defendants are allowed to give their account of the incident directly to the medical expert.
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At the beginning of April the second phase of reform took effect. This introduced a new system for obtaining initial medical reports. Medico-legal experts also need to be registered (with a new body, called MedCo) before they are allowed to provide or commission initial reports for soft tissue claims arising from road traffic accidents.
As a whole, these reforms are intended to ensure that drivers and their passengers who make genuine claims for whiplash and other injuries receive compensation, while deterring the unscrupulous from playing the system. The hope is that fraud and exaggerated compensation claims are more likely to be refuted as insurers and claimant lawyers share information.
Potential whiplash injuries should be diagnosed more accurately, thanks to the changes around initial medical reports. Capping the costs should also help reduce the costs associated with these claims.
As an employer, or driver, you are not impacted directly, and shouldn’t need to change your fleet management or driver procedures. But it is important that you continue to notify claims as soon as possible. This is especially true where fraud is suspected or an incident involves a low-velocity impact.
This will allow your insurers to share relevant details about the incident with the medical expert. This might include alerting them to the fact that the force of the impact was minimal. Details of
The UK has the highest whiplash costs in Europe and 20% of every motor insurance premium we pay is related to the costs of settling whiplash injury claims.
any damage to the vehicles, perhaps with photographs and an explanation of the direction of the impact, may be relevant. Any other irregularities should also be highlighted.
Providing this information promptly will ensure that the correct legal process can be followed and your insurer’s team will have sufficient evidence to defect the claim. This will ensure the best outcome for your business, and collectively, for everyone.
Hopefully, sometime soon we’ll all be feeling the beneficial effects when we’re renewing our annual motor insurance.
www.darwinclayton.co.uk
www.tomorrowscleaning.com
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