With the recent Ministry of Justice (MOJ) announcement of the forthcoming Civil Liability Bill - a highlight of which are major changes to how compensation will be calculated and awarded for injury and whiplash claims which is supposed to help reduce the cost of insurance for motorists – a key questioned being asked by solicitors and law firms representing injured claimants is will the insurers actually pass on any such savings?
It has long been suggested by UK insurers – many of whom have recently announced impressive returns and profits for their shareholders – that the cost of paying injury claims is far too high and adds on average £35 to every motor insurance policy in the UK. The insurers have also previously stated that of course, any such saving would be passed onto the hard-pressed motorist; well now they are a step closer to formalising this commitment through a letter addressed to Justice Secretary David Gauke.
The letter, signed by CEO’s from 26 major insurers, states that:
“We remain committed to the principle of 100% compensation for victims of catastrophic injury but we also want to see a modernised framework that is fair for everyone who buys insurance. If the government’s proposed changes are implemented, we believe this will deliver on this principle.”
Simon McGinn, general manager of insurance giant Allianz, also added:
“Allianz’s objective has always been to compensate genuinely injured people quickly and fairly without influence from disproportionate legal costs, so we welcome the whiplash claims provisions within the bill…The principle of fairness is also embodied in the industry’s position on the discount rate and the measures announced provide a structure around which this can be achieved. We look forward to seeing the bill progress into law and to the benefits that will accrue to customers as a result.”
To find out whether you may be able to make a personal injury claim, contact one of our friendly and sympathetic team for further advice on 0800 977 4852 or via email here.