referral fees

whiplash claims reform

Reforms to Stop Whiplash Claims Shelved

Accident Claims can now reveal that the UK government has shelved it’s plans for personal injury reforms. The news, which could have seen the end of whiplash claims emerged as the Secretary of State’s message was emailed to members of the ABI

The original reform plans would have seen the personal injury small claims limit rise from 1k to 5k and the any rights to claim for soft tissue injuries removed.

Holly Paley, Accident Claims spokeswoman thinks the news is positive for personal injury claimants. “We think on the whole the decision to shelve reforms is more of a positive. Personally we thought that the proposed personal injury changes could have significantly hindered genuine claimants. Unfortunately in every industry there are always people who manipulate the system and I think we need to come up with better ways to highlight fraud rather than look at a blanket ban altogether. Genuine whiplash claims would have been affected by these reforms and people would have lost the ability to claim compensation for this”.

The MOJ have made it clear that the issue of reform is certainly not off the agenda. For the Ministry of Justice the number of whiplash claims are still too high and contribute to the rise in insurance premiums. We’re not convinced as numbers of whiplash claims have fallen dramatically over the last few years, premiums remain the same.

There still remains significant support for changes to personal injury legislation and it’s likely that something will be done at some stage. Mounting pressure on government officials and No10 Downing Street means at some point something has to give.

It’s important that any implemented changes are based on actually independent evidence and not on the basis of keeping the pockets of insurance companies lined.

Follow Accident Claims on Twitter to keep up to date with all the personal injury changes that could affect your ability to make a whiplash claim.

The End Of Referral Fees?

The Government have announced that from sometime next year in an effort to reduce the number of accident claims they intend making the payment of a referral fee illegal. They point to the fact that claims have increased due to the efforts of the many claims management companies which they says encourages victims to claim. Whether that will work is questionable.

In relation to a genuine victim why should he not use a claims management company who appoint a top firm of personal injury lawyers to represent him. Insurance Companies themselves derive much of their income from passing on details of accident claims to Lawyers in return for huge fees. Admiral Insurance have stated that 6% ofits profits is derived from referral fees.

Therefore it is likely that insurance Companies and Lawyer’s will find some ways of circumventing these new laws as and when they come into force. Many Lawyers and Accident Companies are talking together and forming joint ventures as a marketing exercise which would also be legal. What is wrong with a victim being “encouraged “ to claim if his claim is valid. The
answer is “ Nothing”

We feel that sense should prevail and the only person who should be penalised is the fraudulent claimant who clouds the water for all the genuine accident claims victims.

The real problem will in the interpretation of exactly “ What is a referral fee?