Falling Car Accidents But Rising Claims – How Is This Possible?

A recently published BBC article has hailed, once again, of a compensation culture in the UK. With figures quoted from the Actuarial Profession, a drop of 11% is reported in car accidents, yet an 18% rise in claims. “How can this work?” I hear you cry.

The number of insurance companies passing on motorist’s details following a collision is thought to be partially to blame, automatically railroading clients into a compensation claim with a legal firm linked to their company. Other companies are also thought to pass on details of collisions, targeting individuals with offers of compensation, via phone and text.

There are fears that the issues could lead to a cost of £400 million a year for the insurance business and the potential of soaring insurance premiums. It seems rather….interesting, let’s say, that it is the insurance companies themselves that are pushing the claims that are in unison pushing their premiums through the roof. Although having claim cover in your insurance can be thought of as a useful addition it is in fact not necessary. A personal injury (PI) or whiplash claim is possible without ‘claim cover’ as an addition to your car insurance. Most legal firms who deal in PI in fact practise a no win no fee system. So why is it that insurance firms are passing our details on to the lawyers?

Insurance firms earn huge amounts from deals with legal firms whom they have deals with to pass on claims to via this system. We feel like we are getting a great deal when in fact we are getting forced into taking legal instruction from a firm who take thousands of cases a month and power through personal injury claims, thinking of numbers rather than the people themselves. Maybe you wish your case to be over as rapidly as possible and do not wish to shop around or have the hassle of finding a lawyer. In this case the current system must be ideal for you.

However, if not, you may feel sympathetic to my position. I am of the opinion that in fact this practise of passing on details should be outlawed. People should not feel forced to claim, the claiming process is brilliant, yes and it helps people you really truly do deserve compensation to get the compensation they so deserve but the passing on of details leads to people who need not claim and wish to make an easy dollar, to enter into a claim when they previously would not have. In fact insurance companies are in effect pushing the cost of their insurance premiums up by engaging in this practise. This is unfair to us as consumers.

Author: Nicholas Jervis