A group of MPs has called on the UK's car insurance industry to “put its house in order” after accusing it of encouraging fraud and exaggerating accident claims.
A report submitted by MPs on the government's Transport Select Committee focused on how the car insurance industry handles claims, particularly those related to whiplash. Insurance companies are accepting whiplash claims without proper medical documentation, says the report, and in doing so raising insurance premiums for the public.
The Association of British Insurers says it accepts that insurers are taking part in a 'dysfunctional' system, but Motor Policy Advisor Rob Cummings says the ABI is pushing for change: "We've argued for a number of years that this is a significant problem for the industry, and it's a problem that costs the public £2 billion per year.
"We strongly support a reform in the way medical evidence is presented. At the moment insurers don't feel that the medical reports are worth the paper they're written on, and that there's no objective test for whiplash.