A report conducted by the House of Commons Transport Committee has urged the insurance industry to do more to help reduce the number of bogus insurance claims being made, and so help stem the rise of personal injury claims which is adding extra cost onto insurance premiums year on year.
The MPs report recommended that the insurance industry funds a dedicated police unit to tackle cash for crash scams which are reported to be on the increase. The introduction of a police unit concentrating on combating this kind of crime would have a dramatic impact on reducing the number of illegal claims and staged accidents which are happening across the country, the report suggested.
The House of Commons report also urged the Government to make changes to the driving test to ensure only those with very good driving ability passed in order to reduce the number of serious accidents in which young drivers are involved in every year.
The rise in personal injury claims after a car accident were blamed on insurance company’s practice of receiving a referral fee from lawyers specialising in personal injury for putting them in touch with potential clients. The report found that 40% of insurance companies work in this way. However the Insurance companies blame the “compensation culture” in Britain for the rise in personal injury claims.
