Britain’s compensation culture is out of control, insurance chief warns

Britain’s compensation culture is out of control, insurance chief warns

“With whiplash we have had to prove fraud beyond any reasonable doubt, and there is about a one in 10,000 chance of proving that so often we have to pay or face even higher costs.”

He added: “The compensation culture is becoming a real issue for society.

“It’s a cultural shift, from an era where people thought ‘I want to keep my costs down and fix the car’ to ‘How can I profit from this?'”

“In the current recessionary environment people are looking for money from anywhere, but if we’re not careful we will end up having the same problems in the US, where the problems are writ very large.”

Research from Axa earlier this Spring said deafness claims made on commercial insurance policies were up 160 per cent on 2009. Axa said that while many claims were genuine, there was evidence of a “growing number of fraudulent claims”.

The company said it was too early to put a figure on claims for stress caused by road accidents, but that it was a worrying trend. Claims management companies are also advertising online that Britons could be “eligible for compensation” even if they lose their appetite at work, as it could be caused by pressure from the employer.

Whiplash claims fell last year as the Government crackdown on the problem finally begin to reap some reward.

Mr Evans said that on average motor insurance policies fell by an average of aruond 10 per cent or £40. They could fall by another £50 if the measures called for by the Transport Select Committee take effect.

He said: “The Association of British Insurers says whiplash adds an estimated £90 to premiums so hopefully we’ve got another £50 to go.”

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