New measures target bogus claimants

A new crackdown on false or exaggerated whiplash claims has been announced by the government.

Under the new measures, potential compensation claimants suspected of exaggerating whiplash or other injuries will have their cases thrown out of court.

The practice by lawyers of offering incentives like money or free gadgets to encourage people to make a claim will also be banned.
The reforms by the Ministry of Justice (MoJ) come amid what it calls “the rise of compensation culture” and its impact on insurance costs.

Although AA figures show the average cost of motor insurance fell by more than £100 over the last year, bogus claims continue to hit honest motorists in the pocket.

The Association of British Insurers (ABI) says that 59,900 dishonest claims - a rise of 34% - cost insurers £811m in 2013.

"These changes are a very positive development for the vast majority of honest insurance customers who end up paying for the fraud of the minority,” said Otto Thoresen, director general of the ABI.

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