Biba backs calls for further debate on telematics and more rigorous driving tests
Biba has backed the Transport Select Committee's report into motor insurance, which calls for a promotion of telematics, harder driving tests and insurers revealing their secrets on referral fee arrangements.
The trade body has thrown its weight behind a proposal to investigate promoting telematics in cars, the technology to track and retain information on driving habits with the reward of cheaper premiums.
Graeme Trudgill, BIBA Head of Corporate Affairs, said: "There are already several new insurance broker 'black box' telematics products that have been recently launched and BIBA welcomes further discussion and wider debate on this technology."
BIBA said it welcomed the Transport Select Committee’s conclusion to make the driving test more rigorous and to make an advanced driving course available which can effectively signal to insurers that drivers who have completed it are safer. It is now time to review the Pass Plus test and BIBA looks forward to the proposed consultation.
The report calls for the Government to sponsor a research project on the international experience of restraining the number of personal injury claims with the aim of publishing a discussion paper.
The report referred to one of BIBA's key reasons for the higher cost of motor insurance as the increase in the propensity to claim, the increase in the amount awarded, the impact of claims management companies and the increases in the number of whiplash claims.
Trudgill added: "The propensity to claim for a non-fault injury following a motor accident has tripled in the last seven years and this has led to more claims and higher premiums."
In order to tackle this issue of uninsured drivers, the Committee welcomed the new scheme of Continuous Insurance Enforcement (CIE) and recommended a promotional campaign aimed at young drivers.
Trudgill said: "BIBA also agrees that penalties for CIE offences should be reviewed one year after CIE has been implemented."
