|
MP’s have been looking at the causes behind the recent rises in Motor Insurance and their report makes uncomfortable reading for the Motor Insurance Industry. Recent public statements by insurers looked to place the blame squarely with Personal Injury Solicitors however the report chaired by Liverpool Riverside MP Louise Elman paints a very different picture. Far from viewing increased access to the courts for people who have been injured in an accident claim through no fault of their own in a negative light Louise Elman has actually seen this development in a positive light, highlighting other issues including fraud as the real problem. "Wider access to justice is to be welcomed, but it has come at a significant cost, with far more personal injury claims being made than in the past.” "The police made plain to the committee that 'staged accidents' are on the increase and that, so far, we have been lucky there have been no fatalities resulting from such incidents. That luck may run out unless the insurance industry acts rapidly to help the police target this kind of insurance fraud." When addressing the issue of the increase in the number of personal injury claims far from backing up the insurance industry they highlighted the role of the insurance industry as a significant factor in the rise in claims. At the same time as criticising Personal Injury Solicitors many in the Insurance Industry have been attempting to boost their own profits by selling information about drivers who have been involved in accidents to Claims Management Companies. Louise Elman states "Consumers are largely unaware of how much money moves around the insurance industry in this way when they make a claim. They deserve to see where their money is going. If insurance companies cannot agree a method by which to improve transparency around referral fees, then the Government should step in, with legislation if necessary" Despite the damning report from the Transport Select Committee the Association of British Insurers (ABI) is continuing with the “head in the sand” approach with Nick Starling, a director of the ABI stating "This report is a missed opportunity. The Committee took a great deal of evidence, and has chosen to ignore much of it," Perhaps before dismissing a report from the independent select committee of MP’s the ABI may find it more useful to tackle the 40% of Insurance companies who sell details of their own clients to Claims Management Companies which has contributed to the rise in overall Insurance costs for Britain’s hard pressed motorists. The Paul Rooney Partnership - Compensation claims specialists
Related Articles -
Compensation claims, personal injury solicitors,
| 
