Car insurance firms have panned a plea from MPs to conduct mandatory medical examinations in whiplash claims, believing this will raise premiums for truthful motorists.
The House of Commons Transport Committee judged a “dysfunctional” industry where insurance companies unwittingly encouraged crime through paying out compensation even when fraud was suspected.
They have called on the government to eradicate them for resolving whiplash claims without a medical test, while getting behind an initiative to halt injury lawyers bribing their clients with cash and iPads.
This news has been welcomed by the Association of British Insurers, however it believes that completely banning these kinds of settlement s is not the right path to go down.
When an accident takes place, the claimant has up to three years from the day of the accident to claim. Therefore, there is no reason for an insurer to pay for a medical report, say, two years and ten months after, when the person claiming admits themselves that they have recovered from any injury caused.
Taking away the insurers power to settle a claim regardless of a medical report would only got towards raising an insurers claims expenses, and therefore premiums.
What must be done is ensuring those claiming, claim faster, and are embedded in the system, hence a medical professional can help whilst they are still injured.
The current system allows injury lawyers a monetary incentive to provide claims on behalf of people, and which has found insurers facing an increasing tally of claims for psychological injury from minor road traffic accidents.
Placing a blanket of dismissal over such claims may result in adverse consequences for legitimately injured people who need to file a claim for compensation.
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