New Measures Introduced To Check Rising Premium Costs

After the discovery that whiplash claims were costing the British insurance industry around £2 billion in annual costs, Prime Minister David Cameron convened a summit of top insurance industry players to bring an end to the menace. He has announced new measures designed to bring down the loss substantially.

Commenting on Britain’s grim insurance situation, David Cameron said that the nation had become “the whiplash capital of Europe” which was costing every policyholder approximately £90 more in premium payments.

New resolutions that were tabled at the meeting included technological breakthroughs, medical evidence along with raising the limit for claims. Prime Minister David Cameron seems to be leaving no stones unturned in proving he will do all he can to help Britain overcome this alarming problem.

Although the accident rates have been consistently falling by 16 per cent, whiplash claims show no sign of improvement. Since the last three years, whiplash claims have grown three times over. The insurance industry has reacted strongly to these developments, arguing for stricter measures to check fraudulent claims from taking place. Suggested measures included a minimum driving speed to be set below which personal injury claims cannot be filed, along with more rigorous standards of medical evidence. Some Ministers in the Cabinet have gone ahead to announce that they are willing to reduce the small value personal injury claim fee charged by lawyers, which is currently around £1,200. According to them, this could help reduce the cost of acquiring legal assistance in such cases, along with deterring lawyers from encouraging fraudulent claims.

Even the compensation culture has been cited as a major factor in rising car insurance premiums, which has led to motorists desperately trying to compare car insurance quotes online in order to bring the costs down, if only by a fraction.

David Cameron was recently quoted as saying, “I am determined to tackle this damaging compensation culture which has been pushing up premiums. I want to stop trivial claims, free up businesses from the stranglehold of health and safety red tape and look at ways we can bring costs down.”

The issue of young drivers struggling with high premiums was also a cause for concern. It has been decided to introduce telematics systems and provide smartbox technology to young drivers, which encourages them to adopt safer driving and be rewarded with cheaper car insurance premiums in return. Basically, telematics systems detect and keep track of driving behaviour by recording speed, braking and corner cutting and sending the information to the insurance company. The company then issues an appropriate premium to the driver based on how safe a driver he/she is.

With technologies such as these being introduced, young drivers can expect their car insurance quotes to take a turn for the cheaper. Along with these measures, the car insurance industry wants added stipulations to be introduced, such as zero alcohol limits for young drivers, graduated licensing, structured learning programmes and a minimum period for learners before they took their tests.

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