Whiplash claims 'raising premiums'

12/01/12

By Sarah Tawton

A surge in the number of claims for whiplash injuries is pushing up the cost of car insurance, MPs have warned.

A report by the Commons Transport Committee said a steep rise in personal injury claims was "the main reason for the rise in premiums".

The group called for the creation of a cross-departmental ministerial committee to look at ways of cutting car insurance costs for motorists.

It wants ministers to raise the threshold for awarding damages in whiplash cases, which it said were often costly for insurers to challenge and sometimes involved a "subjective" diagnosis of injury.

The committee also said insurance providers should act more responsibly when managing car accident claims.

Labour MP Louise Ellman, who chairs the committee, said: "Although we strongly support access to justice, drivers should not be rail-roaded by cold callers into launching legal action."