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Are False Injury Claims Driving Up Insurance Costs?

Just some months past figures discharged showed that Britain’s roads ar as safe as they need been for a protracted time. Accidents were fewer and also the quantity of individuals lac on the roads had born considerably.

However, worth} of insurance for under-25s is eye-watering and also the average price for a 17-20 year-old male is £2,960. thus why is insurance still thus high?

The main reason, consistent with insurance firms, may be a vast increase in judicial proceeding caused by the enlargement of the “no win, no fee” culture. This has redoubled legal bills across the board. on the average there ar around two hundred road accident claims lodged a day and lawyers ar solely paid if the claim is productive, however their fees ar substantial.

So is it individuals are additional awake to their rights create a claim or is it that insurance firms ar encouraging additional people to push their luck associated make a claim for an injury that truly won’t be that bad?

It would appear a small amount of each. Last year saw a five-hitter rise within the quantity of whiplash claims within the UK, presumably claims that will not are created if TV commercials hadn’t been thus keen to urge individuals to form a claim for associate accident they need been concerned in.

It’s calculable that every claim will increase a premium by around £80 annually, not very enough to justify the value of some premiums, however it’s thought that the massive fees charged by legal companies and claims solicitors is what’s very behind the costs.

The darker facet of a additional litigious thusciety may be seen within the so known as “cash for crash” culture. this can be wherever individuals deliberately get entangled in accidents in order that they’ll then claim for compensation. Mohammad Patel from Manchester was unfree for four years once being found guilty of deliberately inflicting accidents. For a fee of £500 per collision he by choice caused ninety {three} crashes during a three year amount, every cost accounting insurers a median of £17,000. He was solely caught once insurers became suspicious that such a large amount of of those collisions came about at constant roundabout.

Patel was assisted by 2 brothers, Rezwan and Rehan Javed, United Nations agency ran a firm known as North West Claims Centre. they’d produce false invoices, that were then passed on to insurance firms. In total it’s thought that they price the insurance trade around £12 million in total.

Though the individuals to blame for this additional serious case of insurance fraud ar currently in jail, not all claims ar organized by criminal gangs on such an outsized scale. This was highlighted by a survey on behalf of Moneysupermarket.com, that found that shockingly, one in twenty drivers aged below thirty five had deliberately braked “in such the way on cause the subsequent automobilist to strike them,” in order that they might then build a claim for compensation.

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