ABI Reports UK is the ‘Whiplash Capital of Europe’

Research from the Association of British Insurers highlights the fact that the UK is the ‘Whiplash Capital of Europe’. According to the ABI “eight in ten personal injury claims following road traffic accidents are now for alleged whiplash, over twice the average of France, Spain and the Netherlands.

“The full extent to which the UK’s compensation culture has led to an epidemic in whiplash claims set out in the ABI’s submission to the Transport Select Committee inquiry into whiplash.”

The ABI gave the following statistical analysis, which supports the findings:
• In the UK 78 percent of personal injury claims following road accidents are for whiplash, twice the average percentage of whiplash claims across Europe. It compares to 30 percent in France and Denmark, 31 percent in Spain, 35 percent in the Netherlands and 68 percent in Italy.
• Despite the 20 percent fall in injuries reported to the police between 2006 and 2011, the number of personal injury claims made by third parties has jumped by.40 percent*.
• Whiplash claims now cost over £2.2 billion [$3.36 billion] a year, adding an extra £90 [$137.70] to the average annual motor insurance premium.

James Dalton, the ABI’s Head of Motor and Liability, said: “Insurers remain fully committed to ensuring access to justice for genuine claimants. But the harsh reality is that the UK remains the ‘whiplash capital of Europe’, with our ‘have a go’ compensation culture making whiplash the fraud of choice for many. With an annual whiplash bill of £2 billion adding an extra £90 a year to the average motor premium tough action is needed to tackle this problem.”

To combat the explosive growth in claims for whiplash injuries, the ABI has proposed that the following measures be taken:
• Medical assessment of personal injury claims by independent, accredited doctors with the latest training in soft tissue neck injuries.
• Ensuring a simple and speedy way of settling low -value claims by increasing the Small Claims Track Threshold from £1,000 [$1,530] to £5,000 |$7,650].
• Setting out a fair and transparent method for calculating compensation for minor whiplash injuries, which is set independently.

Dalton added: “Our proposals will ensure that genuine claimants receive access to justice at a proportionate cost, while driving out fraudulent and exaggerated whiplash claims that increase the cost of car insurance for honest motorists.”

Source: Association of British Insurers

Topics Claims Europe