Insuers told to crack down on whiplash fraud

Posted By: James

Friday 4th July 2014

The Transport Select Committee has said that insurers should be banned from settling any whiplash injury damages claim without commissioning a proper medical examination to help to stamp out fraud and exaggerated claims. A report by the committee into potential abuses of the system also urged the Government to ban personal injury lawyers from offering "inducements" to injured drivers to encourage them to claim. The MPs said that in the wake of new rules that mean insurers, law firms and medical practices can all be owned by the same business, the Government should take steps to ensure that each party operates independently during a claim. The committee cited instances of solicitors commissioning medical reports from apparent experts within the same organisation who may not be regarded as independent. The committee's report follows its fourth inquiry into the market for motor insurance, and forms part of a widespread drive backed by the Government and industry to bring down the costs of insuring vehicles.

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