Despite legal changes, introduced in April this year, a number of claims companies are still actively offering inducements to potential claimants. Amongst these, include offers for an immediate payment for a car accident claim.
Attempts to circumvent the ban on referral fees, for car accident claims, are also being investigated. Some 150 claims companies are under investigation by the Ministry of Justice.
Scotland turns down the introduction of ‘Jackson Reforms’
The Scottish parliament has decided not to introduce the same bans on referral fees, and the drastic cut in costs obtainable by car accident claim lawyers. The author of the Scottish review, claims there is no evidence of the present system encouraging a claims culture. This is in stark contrast to the insurers argument, that the no win no fee culture has led to a dramatic rise in bogus car accident claims for personal injury. Evidence shows that Scotland has the lowest car insurance premiums- which would suggest claims are substantially lower than the rest of the UK.
The Ministry of Justice will today confirm there is to be no increase in the small claims court limit.
The department is finally set to publish its response later this morning to a consultation on reducing the number and cost of whiplash claims.It will include plans for an independent medical panel to assess whiplash claims from next year.
But the increase in the small claims track threshold from £1,000 to £5,000 – a key element of the original consultation – will not be included in the plans.The news will come as a huge relief for claimant personal injury firms that feared for their future if the limit was raised above the level of most whiplash claims.
But insurers will be disappointed that they failed to convince the government that a £5,000 limit would help to tackle fraudulent and exaggerated claims.
Car insurance premiums have fallen at a record rate of 12 per cent compared to last year after a tough clampdown on bogus claims.
The typical quote for annual comprehensive car insurance cover was £568 in October, which was 4.5 per cent lower than July and marked a a 12.4 per cent fall on 2012 rates, according to the latest AA Insurance premium index.The Index which takes the average of the five cheapest quotes on the market showed a massive reverse for motorists following a period of strong increases, with premiums rising by more than 40 per cent just two years ago.