Off the Fence: Alan Mak on whiplash fraud

AROUND £2billion every year is paid out to motorists claiming injuries from whiplash, according to the Association of British Insurers.

Staggeringly that equates to £90 paid annually by the average driver to their insurer to fund these claims.

Alongside the genuine claims, Britain has also become the whiplash fraud capital of Europe, with claims up by 50 per cent in the last decade despite having some of the world’s safest roads.

One survey conducted recently by AXA Insurance found that 2 per cent of people admitted to filing a fraudulent claim, while 11 per cent knew someone who had done so.

Insurance companies might seem like a victimless target, but the truth is hardworking and law-abiding citizens and motorists are forking out to pay for other people’s bogus injuries.

That is why the government intends to crack down on these fraudulent claims.

I will help to guide this through parliament in my new role at the Ministry of Justice.

The expected savings should reduce annual motor premiums by about £35 per year. For too long, a small minority of people have exploited a rampant compensation culture at the expense of the rest of us, and I’m proud the Government is taking action to help law-abiding motorists.