Call FREE from a Landline or Mobile on 0800 634 75 75

Whiplash Claims, the “Compensation Culture” and Insurers Cashing In!

Do any of these phrases or notions ring a bell to you?

  • Whiplash claims push up premiums
  • We have a whiplash epidemic that is costing the consumer with higher insurance premiums
  • There is a ‘compensation  culture’ that needs to be stamped out
  • If there were less claims, there would be lower premiums

Prepare to be shocked! Read on for an insight in to how it really works!

In April 2013 the government caved to pressure from the multi-billion pound insurer industry, who are known to regularly hand out millions of pounds in donations to political parties, to lower the cost of compensation claims and make the victims pay to claim to have an interest in their case. The Legal Aid, Sentencing and Punishment of Offenders Act stopped the payment of referral fees for cases, and stopped lawyers recovering all of a victim’s legal fees from the opponent.

On top of that, the fees a lawyer can recover for a road accident claim were slashed by more than 50%.

So why aren’t our insurance premiums falling?

The Insurers are Cashing In

In an article from The Law Gazette, according to sources from the London Stock Exchange, insurance giant Direct Line are cashing in on the reforms, seeing massive increases in profits and making no real effort to pass any of the savings on to the consumer.

Reports indicate that, first and foremost, they took a £14m hit since referral fees have been banned which was the act of insurers selling compensation claims to solicitors for money – and then blaming lawyers for a “compensation culture” which was later proved to be media fuelled myth with the insurers actually responsible for increasing claims.

As a law firm, we were never involved in the referral fee industry so you can rest assured I’m not being hypocritical in my views on this matter. It goes to show you how much the insurers were making by selling claims to solicitors though – £14m just for passing their policyholders details on to a lawyer!?

But the sources have shown that the loss of the referral fee money has made little difference to their profits which have soared by a staggering 70% – reportedly making £423.9m last year compared with £249.1m in 2012.

But what’s sickening is this – premiums have only lowered by 3% during 2013!

Law firms don’t make anywhere near that! This serves to show who really is cashing in when it comes to claims!

So all this moaning from the insurance giants who are already vastly wealthy private companies making billions of pounds in profits each year was never in the interests of their customers; they simply want to protect their profits. To be honest, we have been telling this to people for years.

If profits have soared by 70%, why are consumers’ insurance premiums not falling by 70%!?

They have got what they want and now pay a fraction of what they used to in legal fees to solicitors, and after years of promising that savings would be passed on to the consumers, they pocket the cash instead.

All this talk of compensation claims pushing up premiums was total nonsense; it was always about their profits. What’s equally as bad as that, in light of referral fees being illegal, they have created their own legal services division which they quote should ‘help to shield existing customers from potentially excessive third-party solicitor fees’ – even though legal fees for road accidents are fixed.

How can there be excessive third party solicitor costs if we only get a fixed standard sum per case?

So the next time you hear about ‘ambulance chasing lawyers’ and compensation claims costing you in higher premiums, think again – the insurers are cashing in, and you are losing out.

IMPORTANT: advice on this page is intended to be up-to-date for the 'first published date'.

Request A Call Back

Fill Out Your Details

Your privacy is extremely important to us. Information on how we handle your data is in our Privacy Policy.
You have the right to object to the processing of your personal data.

NHS Email Leak
Search Our Blog
Free Instant Valuation
Compensation Calculator
Instantly Values Your Claim

Instantly value your claim for a head injury!

  Minor    Moderate    Severe

Instantly value your claim for a neck injury!

  Minor    Moderate    Severe

Instantly value your claim for a shoulder injury!

  Minor    Moderate    Severe

Instantly value your claim for an elbow injury!

  Minor    Moderate    Severe

Instantly value your claim for an arm injury!

  Minor    Moderate    Severe

Instantly value your claim for a hand injury!

  Minor    Moderate    Severe

Instantly value your claim for a torso injury!

  Minor    Moderate    Severe

Instantly value your claim for a mid-section injury!

  Minor    Moderate    Severe

Instantly value your claim for a back injury!

  Minor    Moderate    Severe

Instantly value your claim for a leg injury!

  Minor    Moderate    Severe

Instantly value your claim for a knee injury!

  Minor    Moderate    Severe

Instantly value your claim for an ankle/foot injury!

  Minor    Moderate    Severe

Find out how much your injury claim is worth!

Click on the injured body part to get your INSTANT FREE personal injury compensation valuation texted to your phone within seconds...

  Yes    No   Yes    No   Yes    No

Your privacy is extremely important to us. Information on how we handle your data is in our Privacy Policy.
You have the right to object to the processing of your personal data.

Latest Blog Posts

Compensation for being sent home from hospital

Compensation for being sent home from hospital

Whenever we are admitted to hospital, we expect that doctors and nurses will care for us for as long as necessary before discharging us. This means, as much as possible, health professionals must elim...

Published on the 22/10/2021


Hospitals failing to meet promise of safe maternity unit

Hospitals failing to meet promise of safe maternity unit

According to recent reports, a number of NHS hospitals that said they had a safe maternity unit have had their claims reportedly proven wrong. Upon review, it was reportedly judged that seven trusts c...

Published on the 08/10/2021


Ian Paterson compensation claims

Ian Paterson compensation claims

The disgraced breast surgeon Ian Paterson is one of the most infamous medical practitioners in the UK. After practicing at public and private hospitals for many years, it was revealed that Paterson ha...

Published on the 24/09/2021


Dental injury compensation claims

Dental injury compensation claims

Over the course of our experience as specialist injury and medical negligence lawyers, we have represented many people for dental injury compensation claims. From incorrect extractions to misdiagnoses...

Published on the 10/09/2021


Leg injury compensation claims

Leg injury compensation claims

Leg injuries are the subject of some of the most serious injury claims that we deal with, as these injuries can often severely incapacitate the people they affect. Whether they involve a temporary bro...

Published on the 27/08/2021


Spire Healthcare court case comes to conclusion

Spire Healthcare court case comes to conclusion

A private healthcare provider has been fined after it was found that it failed to notify patients of potential treatment failures and problems within a reasonable period of time. The Spire Healthcare ...

Published on the 13/08/2021


Pelvic mesh compensation claims

Pelvic mesh compensation claims

In recent years, concerns about the safety of pelvic mesh implants have been raised after many women began coming forward to report the complications they had suffered. While many women have already c...

Published on the 28/07/2021


Serious neck injuries – advice from The Injury Lawyers

Serious neck injuries – advice from The Injury Lawyers

Anyone who has sustained serious neck injuries as a result of another party’s negligence may be eligible to ...

Published on the 16/07/2021


Serious road accidents

Serious road accidents

In the UK, there are thousands of injuries caused by road accidents every year, many of which involve significant pain and suffering for the injured parties. Falling victim to a road accident can be e...

Published on the 02/07/2021


Compensation for childbirth brain injuries

Compensation for childbirth brain injuries

In childbirth, both the safety of the mother and the baby are at stake. Fortunately, modern medicine means that giving birth is much safer than it used to be. However, sometimes, in cases where severe...

Published on the 18/06/2021


Categories
Archives
%d bloggers like this: