Skip to main content

Government being “hoodwinked” by insurance industry, says new lobbying group

By 4th June 2017No Comments
New group of personal injury lawyers formed to fight changes to whiplash compensation.
A new lobbying group of personal injury lawyers – A2J (Access to Justice) – has launched a campaign against the proposed changes to compensation for minor whiplash injuries.
Last November chancellor George Osborne announced in the 2015 Autumn Statement that the government would bring forward measures including scrapping the right to general damages for soft tissue injuries and raising the upper limit for personal injury claims from £1,000 to £5,000.
The Government predicted the measures would generate average savings of £40 to £50 per motor insurance policy that would be passed on to customers
The move was widely welcome by insurers however there were dissenting voices in the broking community.
However according to the new group the changes will not reduce insurance premiums, as the government contends, but instead undermine the legal rights of millions of UK citizens.
A2J chair Martin Coyne said: “The government is being hoodwinked by the insurance industry, which has persuaded ministers, against all the evidence and past experience, that these reforms will bring down premiums.
“Instead, members of the public who have a genuine claim will be denied access to justice, even for quite serious injury cases, and premiums will continue to rise as insurers replace falling investment income with higher prices. It’s great news for insurance company executives and shareholders but terrible for those hurt through no fault of their own on our roads.”
A2J has committed to making sure that ministers “understand the full implications of their proposals” during the consultation period.
Partial and perverse
Coyne added: “We know the insurance industry’s fraud statistics are partial and perverse, and the real reason behind these proposals is to protect their profits following a steep fall in investment returns.
“The idea that the insurance industry is on the side of the consumer in this respect is, frankly, laughable.
“All it is doing is persuading the government to reduce levels of cover offered to victims – while offering no guarantees that any resulting savings will be passed on to policyholders.”

article care of

Tim Kelly

Tim is a highly qualified Independent Engineer with over 20 years experience as an Engineering Assessor of damaged vehicles.

Leave a Reply

Knights Hosting