Whiplash fraud has added to sky-high cost of motoring

In late 2013, the coalition Government announced a bid to help cut motoring costs.

One of the proposals was to crack down on the widespread abuse of whiplash fraud, which pushes up insurance premiums.

It now seems that this is already paying dividends.

Whiplash fraud has added to sky-high cost of motoring

The Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) has resulted in legal fees for whiplash-type third-party injury claims being reduced by 65 per cent.

There has been a 12 per cent reduction in the frequency of bodily-injury claims.

These are welcome and swift results from an overdue initiative. The UK had become, as David Cameron said three years ago, the whiplash capital of Europe.

France and Germany, for example, need a higher level of proof before they grant such injury compensation payments.

But if the UK is the capital within Europe, then Northern Ireland is the capital within the UK.

The Province has a particular problem with whiplash, due to the fact that compensation payouts have traditionally been higher than in Great Britain.

This is one of the reasons why Northern Ireland has such high car insurance premiums.

Alex Todd Brand Manager at Its4women commented "The problem with insurance fraud is that for many people it's rather like speeding. They know it's against the law but don't perceive it as a serious crime. In a poll, ABI survey found that approximately 50% of adults admitted if they had the opportunity, they would exaggerate an insurance claim."

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