Insurers not passing on savings as promised
People are getting pretty angry with a story that appeared in The Times last month about the fact that we are paying through the nose for car insurance – even though over the year’s insurance companies and law firms have been cutting down on fraud, they are still charging us the same amount.
Rob Crompton, Head of RTA here at Michael Lewin Solicitors commented, “It’s poignant that Chris Grayling brought in personal injury reforms back in 2013 to reduce the number of claims and save the insurance industry money. Grayling had said that we are the whiplash capital of Europe and suggested that the necks of Britons are more delicate than the necks of our European friends.” Rob believes that it is unfounded that many claims were fraudulent and unmeritorious, and that it was those claims that had led to the changes that promised insurance industry savings.
“Industry insiders believe that they have saved £500 million, but these savings do not appear to have been passed onto the ordinary man and women in the street; it’s a scenario that is driving us all mad because we feel that they owe their policy holders this money.”
Brett Dixon, Vice President of the Association of Personal Injury Lawyers said “Unfortunately, for insurers their first duty is to their shareholders, this headline is the most unsurprising headline I’ve ever seen, Insurers cheat motorists because I think most of them believe that we are all ripping them off.”
Rob continued “We now believe that since the insurers promised that they would pass on the savings and haven’t that the Government should step in and insist that they do.”
Louise Ellman, chairwoman of the Commons Transport Select Committee agrees, and has said on numerous occasions that as the insurance industry promised this and it’s not happened, but at the moment they appear to be stuck in a stalemate where the Select Committee are asking the insurers what they are going to do about it and the insurers are saying nothing.
We have to remember that by law everybody has to have car insurance if they drive, you can choose whether to buy a house and not insure it but you can’t choose to have a car and not have it insured.
You wouldn't trust someone who reneged on a promise to you, then why would you believe a word insurers have to say? https://t.co/c599ShgAQx— Access to Justice (@ccesstojustice) September 9, 2016
Measures adopted by the Government made whiplash injuries much less rewarding to claim for, and acted to stop lawyers ‘ambulance chasing’ through referrals. The result has been a 23,000 reduction in whiplash claims over a three-year period, which has netted the insurance industry a saving of more than half a billion pounds.