Thanks to the 1,500 personal injury claims made every day for loss of earnings and emotional and physical damage caused by car accidents, the UK has been crowned the ‘whiplash capital of Europe,’ personal injury solicitor experts say.
Millions of Brits receive unsolicited texts on their mobiles and emails in their inbox every day offering quick and painless personal injury compensation for accidents in which they may or may not have been involved. However, the money to pay all these claims (and the success fees charged by no win no fee lawyers) must come from somewhere – and car insurance companies have been footing the bill.
A large number of these claims are genuine, of course. However, insurers are drowning under a deluge of spurious claims brought by ambulance chasing legal firms, resulting in massive compensation payments and fantastically inflated court costs that they have no choice to pass along to their customers in the form of higher premium prices.
Making things worse is that incidences of outright fraud are on the rise as well, with unscrupulous firms encouraging drivers to make whiplash claims if they had some involvement in an accident, even in the event of no outward damage to the cars in the incident or apparent injuries to those in the car at the time.
The Government wants to take action to eliminate or at least mitigate this problem, as evidenced by the insurance industry summit attended by Prime Minister David Cameron. Finding a way to manage the massive influx of whiplash claims featured prominently in the discussions, according to industry insiders.