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| Whiplash claim system must change, says Aviva | Whiplash claim system must change, says Aviva |
| (about 5 hours later) | |
| The UK's biggest insurer has said that motorists' premiums could be cut by an average of £60 a year by changing the system of whiplash claims. | The UK's biggest insurer has said that motorists' premiums could be cut by an average of £60 a year by changing the system of whiplash claims. |
| Aviva has called for a new process that would force victims to put their claims directly to the insurer of the driver who caused the crash. | Aviva has called for a new process that would force victims to put their claims directly to the insurer of the driver who caused the crash. |
| It suggests that the system would cut out middlemen who inflate the cost of claims. | It suggests that the system would cut out middlemen who inflate the cost of claims. |
| However, one legal group said such a change would leave victims vulnerable. | However, one legal group said such a change would leave victims vulnerable. |
| "Putting the injured person entirely in the hands of the guilty party's insurer would create a profound conflict of interest," said the Association of Personal Injury Lawyers. | "Putting the injured person entirely in the hands of the guilty party's insurer would create a profound conflict of interest," said the Association of Personal Injury Lawyers. |
| "Independent advice is key to preventing such a conflict and ensuring a fair outcome for the injured person." | "Independent advice is key to preventing such a conflict and ensuring a fair outcome for the injured person." |
| Ban expected | Ban expected |
| Whiplash claims are a major factor behind the rapid rise in the price of motor cover. They account for 80% of injury claims, and most go through lawyers who have been charging sizeable fees, Aviva said. | Whiplash claims are a major factor behind the rapid rise in the price of motor cover. They account for 80% of injury claims, and most go through lawyers who have been charging sizeable fees, Aviva said. |
| Costs can rise even further as a result of referral fees paid by lawyers and claims management firms to breakdown firms, brokers and the insurers themselves - in exchange for providing information about accident victims. | Costs can rise even further as a result of referral fees paid by lawyers and claims management firms to breakdown firms, brokers and the insurers themselves - in exchange for providing information about accident victims. |
| Aviva suggested that all this accounted for £118 of a typical motor insurance premium. | Aviva suggested that all this accounted for £118 of a typical motor insurance premium. |
| The government has already given notice that it will ban referral fees and limit legal fees, but Aviva believes the cost could be cut further by putting a claim first to the "at fault" insurer. | The government has already given notice that it will ban referral fees and limit legal fees, but Aviva believes the cost could be cut further by putting a claim first to the "at fault" insurer. |
| The victims should then receive independent clinical advice and there should be a standard tariff of damages focused on care, rather than cash payments, according to Aviva. | The victims should then receive independent clinical advice and there should be a standard tariff of damages focused on care, rather than cash payments, according to Aviva. |
| Some 550,000 whiplash claims are made each year. Aviva estimates that up to 300,000 cases could be dealt with under its proposed system. | Some 550,000 whiplash claims are made each year. Aviva estimates that up to 300,000 cases could be dealt with under its proposed system. |
| "Our primary concerns are that injured parties receive care and compensation as quickly as possible, and that all motorists benefit from a reduction in the excessive costs that have built up in claims over the past few years," said Dominic Clayden, claims director at Aviva. | "Our primary concerns are that injured parties receive care and compensation as quickly as possible, and that all motorists benefit from a reduction in the excessive costs that have built up in claims over the past few years," said Dominic Clayden, claims director at Aviva. |
| Do you agree that the whiplash claim system needs changing? What are your experiences of the current system? Send us your comments using the form below. |