BIBA calls for timescale for fraudulent claims reduction

With the volume and cost of whiplash-related personal injury claims growing steadily, the British Insurance Brokers Association has called for a timescale from the government to reduce the impact of personal injury compensation fraud and massive legal costs, experts say.

BIBA’s call comes on the heels of the response of the government to the latest report from the Transport Select Committee concerning the cost of car insurance in the UK.  The committee reiterated their commitment to working with insurers to explore any and all strategies for reducing the cost and volume of fraudulent claims.

The chief executive of BIBA, Eric Galbraith, said that the industry body wanted to assure the government’s response was broadly wecomed by BIBA, with the association vowing to continue to work hand-in-glove towards the goal of reducing insurance costs.  However, Mr Galbraith expressed his impatience with the speed in which the government is working to take action on the issues, adding that BIBA would like to see timescales and additional details provided by the government in order to move forward the goal of reducing costs incurred by fraudulent whiplash claims.

The industry body feels that these claims are the primary driver behind increasing motor insurance costs, as there are in excess of 571,000 claims reported annualy, which cost honest drivers a massive £2 billion yearly.  The head of corporate affairs for BIBA, Graeme Trudgill, stated that the association is committed to to working closely with the government on any number of issues the Transport Select Committee’s report found, paying particular mind to the anti-fraud project that would see insurers granted access to driver records through the DVLA database.

Leave a comment

Your email address will not be published.