AA demands action on whiplash ahead of insurance summit

The AA has called on government to crack down on Britain’s whiplash compensation culture ahead of today’s second insurance summit held at Whitehall today.

The meeting will be held by Justice Secretary Kenneth Clarke and Transport Secretary Justine Greening, who are set to unveil new whiplash injury reforms following the initial summit hosted by prime minister David Cameron at 10 Downing Street in February.

Over the past two years, claims for whiplash injury have contributed to the biggest car insurance premium increases ever recorded by the AA’s benchmark British Insurance Premium Index. In 2010, the fast-rising premiums recorded by the AA Index prompted a Transport Committee enquiry into car insurance.

Over the two years ending 31 March, the average Shoparound quote for a comprehensive policy rose by almost 50%.

AA Insurance director Simon Douglas said that there had been enough talking and now was the time for action. 

“I hope that Wednesday’s announcement will see a tight timescale applied to reform of the civil litigation which at present, encourages people to make a claim regardless of how serious their injury is or even if they have not suffered injury at all,” he said. “Importantly, we need reforms that clamp down on cold-call claims management and personally injury firms who have contributed to the growth of claims.

“The present dysfunctional system has also spawned a fraudulent multi-million pound ‘cash for crash’ industry.

“Whiplash injury claims cost insurers over £2 billion** last year. That adds around £90 to the cost of a typical car insurance policy.”

Douglas said that he was disappointed at the slow rate of progress reflected in the Transport Committee’s latest report published last month. 

“But I acknowledge that a lot of momentum has built up,” he said. “Reform can’t come soon enough. It is wrong that injury claims are rising while the number of accidents on Britain’s roads is falling.”