UK insurer calls for action to cut fraudulent whiplash claims following nation's naming and shaming.
Most personal injury claims relate to whiplash
The United Kingdom is the whiplash claim capital of the world, Liverpool Victoria argues. The insurer says that 78% of personal injury claims in 2014 related to whiplash and suggested many were fraudulent.
In the United States, in contrast, it was only 65% despite a common perception that claims in the region are prolific.
Some claims management companies work hard to persuade victims to request compensation, Liverpool Victoria says. During the last 2 years, victims typically received 5 calls/texts which said, in essence, “there is money waiting” - and 59% felt pressured to act.
Furthermore, 12% were contacted before reporting the collisions to the insurers which highlights how easily victim data can be traded.
Government crackdown on whiplash claims
The government said in its autumn statement that it plans to crackdown on minor whiplash claims which should, in theory, reduce the typical cost of insurance, Liverpool Victoria says.
On this basis, it is calling on the government to also “quickly and comprehensively” implement recommendations of the Insurance Fraud Taskforce.
Liverpool is UK capital of personal injury claims
Of the motorists that crashed in Liverpool in 2015, 55.2% made a personal injury claim of some type making the city the most prolific in the UK. This figure comes courtesy of the Institute and Faculty of Actuaries. Liverpool was followed by Oldham (50.3%), Manchester (49.4%), Bolton (46.8%), Wigan (46.3%) and Blackburn (45.5%).
Whiplash capital of world title “unfortunate”
Liverpool Victoria GI Claims Director, Martin Milliner, says: "Whiplash capital of the world is an unfortunate moniker and not one we should be proud of. And it's UK motorists who are suffering by paying some of the highest prices for insurance in Europe”.
He continues: “For years, it's been a game of cat and mouse between the insurance industry and fraudsters - when what we need is a multi-pronged solution that will benefit the consumer once and for all. Government makes one change to the system and the fraudsters find a way around it, meaning further action is needed and fraud persists.”
Mr Milliner continues: “Already we are noticing a rise in rehabilitation fraud, highlighting the need for swift implementation of the autumn statement reforms. The more time it takes to implement changes, the easier it makes it for fraudsters to find another loophole, hitting the pocket of the honest consumer.”
"We would like to see a quick and comprehensive response from government to implement all the Insurance Fraud Taskforce's recommendations”.
Liverpool Victoria: “Has already confirmed it would pass on all savings from the autumn statement whiplash crackdown to consumers - we now need these further recommendations to be implemented urgently so customers can further benefit sooner rather than later."