Liverpool is the country's personal injury car crash claim capital, report shows. 55% of drivers claim compared to 30% average.
55% Of Road Accidents In Liverpool Result In Injury Claim
Liverpool is the car crash personal injury claim capital of the United Kingdom, the Institute and Faculty of Actuaries claimed (IfoA). The Faculty's report – that analysed data from 18 top insurance companies – showed that in 2014 55% of collisions resulted in a claim for ailments such as whiplash. The national average was 30% - so motorists in Liverpool could see premiums rise to compensate. Furthermore, the North West had the “highest third party injury to third party property damage” ratio at 43%. It was followed by the: North East (33%), Midlands (32%), South East (30%), Wales (30%), East (26%), West (24%) and then Scotland (20%).
In April 2013, legislation was introduced to cut the number of unscrupulous personal injury claims following road traffic collisions. It banned referral fees that encouraged their filing, for example. However, the claims management sector continued to thrive despite a fall in the number of companies to 979. Turnover increased – in the year to March 2015 – by 30%, up to £310 million.
Government Action To Cut Bogus Personal Injury Claims
The IfoA's David Brown said the report showed that: “Despite a significant drop in the overall number of authorised claims management companies - since Government reforms were put in place - it appears that in regions where there is a large number of claims management companies, there is also a correspondingly high proportion of third party personal injury claims being filed compared to property damage claims.” He added: “Reforms have not changed this”.
Mr Brown continued: “The Government is aware there is a case for further reform of the industry. The Government is due to review the regulation of claims management companies in early 2016. (Such companies) currently make it much easier for claimants in cities like Liverpool to make claims as they assist individuals in making claims for items such as compensation and provide access to solicitors.” He added: “We fully expect the Government review to consider how the rights of claimants stack up against the desire, for example, of Liverpool motorists for lower insurance premiums”.
The Faculty representative added: “It appears that the legislation implemented so far has failed to be hard hitting in areas with a high third party injury to third party property damage ratio such as the North West. The Transport Select Committee previously suggested that the UK was the whiplash capital of the world. It remains to be seen if this, and Liverpool’s pole position here, will ever change.”