Britain’s compensation culture has been described as a ‘merry-go-round’ as research revealed that around £93 extra is added to the cost of a car insurance premium due to high numbers of whiplash claims being made.
Aviva revealed that whiplash was involved in 80 per cent of all car insurance claims it dealt with last year, with more than 770,000 claims made in the UK. In France, just 3 per cent of claims were for whiplash.
The insurance company also claimed that since 2000, personal injury claims have soared 89 per cent, but motoring accidents have actually fallen 40 per cent, in the UK. Meanwhile, between 2011 and 2015, there was a staggering 98 per cent increase in ‘crash for cash’ cases. These are when people deliberately cause accidents, in order to make an injury claim and receive compensation.
Meanwhile, statistics from the Association of British Insurers (ABI) showed car insurance premiums were 10 per cent higher last year than they were the previous year.
A survey ran by Aviva found 85 per cent of the 2,000 respondents believe there is a compensation culture in the UK, as 88 per cent agreed an easy way to make money is through claiming compensation. Additionally, 83 per cent would like to see it reformed.
“Our research shows that the British public is sick and tired of the toxic compensation culture that has increased premiums, fraud and nuisance calls,” a spokesperson for Aviva said.
“The government has a historic opportunity to make a significant change that will cut the cost of motor insurance, and it is clear that the British public is fully behind the reforms. It’s time to stop the nuisance calls, stop ‘crash for cash’, stop spiralling claims that push up premiums, and stop the profiteering at the injured party’s expense.”
Former Chancellor George Osborne announced government reform plans to get rid of cash compensation for whiplash claims, to be replaced with physical treatment for physical injuries, although these plans have stalled.