The Government has announced plans to crack down on expensive whiplash claims, with the potential outcome being a reduction in insurance premiums totalling £1 billion a year.
Justice secretary David Gauke has revealed intentions to introduce a civil liability bill through the House of Lords that proposes changes to the way that whiplash claims are valued and paid out.
An estimated £1 billion reduction in payouts would equate to saving of around £35 per premium for each UK motorist. Figures released ahead of the bill's proposal suggest a decrease in average payouts following a whiplash injury from £1850 to £425 would enable the saving.
The new rules would prevent compensation payouts unless a medical report was provided as proof of injury. Currently, claims can be made without evidence. It's estimated that one whiplash claim is paid out every minute in Britain.
“We are putting this right through this important legislation, ensuring whiplash claims are no longer an easy payday," said Gauke. "The bill will seek to set fixed amounts of compensation for whiplash claims and the halt the practice of settling whiplash claims without medical evidence.”