New Legislation to bring down your insurance costs

4 March 2016

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Good news for motorists and corporate buyers.

Policy holders will be pleased to learn that a new law is being introduced that could wipe £50 off every car Insurance Policy, and £1,000s off company's Employers & Public Liability costs.

Whiplash claims account for 80% of personal injury claims (£2 billion) per annum in the UK and a significant percentage of that is down to fraud.

The changes will end a person’s right to make a cash claim for minor injuries and instead victims of minor injuries would have their rehabilitation paid for. This will save motorists a staggering £1 billion a year.

The measures intend to stamp out dishonest claims and stop people exaggerating the extent of their injuries after car shunts or slips and trips at work or outside.

Meanwhile, legal costs are being reduced as the threshold at which personal injury lawyers can take cases in the Small Claims Court is being raised from £1,000 to £5,000.

Referral fees are also banned and claims management firms and personal injury lawyers can no longer offer victims iPads, shopping vouchers or cash to entice claims.

These measures will help cut the costs of insurance but must continue to sit alongside robust risk management, which remain key to long term premium stability. Feel free to contact your Account Team/Handler for advice. We’re always happy to help. 

Categories: Commercial Insurance, Risk Management