A group of MPs have accused the motor insurance industry of encouraging fraud and exaggeration in car accident claims, including false whiplash claims.
This comes after AXA insurance called for MRI scans and X-rays to be used to diagnose whiplash for a compensation claim to be made.
MPs on the Transport Select Committee said that insurers must “put their house in order” immediately.
Insurers have been telling the public that false whiplash claims are inflating the cost of car insurance by an average of £90 a premium.
Insurers deny that they have encouraged fraud but accept that they have played a contributory factor.
There have been calls for insurers to be more transparent about their links with claims management companies and other parties involved in road traffic accident claims.
It is not uncommon for a victim of a motor accident to be called by the responsible party’s insurance with an offer of a settlement without any assessment being made of the person’s injuries.
Not only has this potentially encouraged fraudulent claims, but for those who are genuinely injured it could mean that their claim is settled at a much lower value as their injuries are not properly investigated.
As Melanie Lidstone Land, expert personal injury lawyer commented yesterday in the post “Calls for MRI scans to diagnose whiplash“ there is no evidence that insurers will reduce premiums if they have the measures they suggest implemented to tighten claims processes.