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To ask the Secretary of State for Justice, pursuant to the Answers of 5 and 12 January 2016 to Questions 20499 and 20722, what assessment his Department has made of the relationship between trends in the levels of motor accident rates and claims payments since 2006.
To ask the Secretary of State for Justice, pursuant to the Answers of 5 and 12 January 2016 to Questions 20499 and 20722, what assessment his Department has made of the relationship between trends in the levels of motor accident rates and claims payments since 2006.
Government data indicates that claims volumes remain at historically high levels. Over a similar period data from the Department for Transport shows accident rates have fallen by around 25%. This is clear evidence that the system is in need of further reform, which is why on 25 November 2015, in his Autumn Statement, the Chancellor announced new measures to reduce the cost and number of whiplash claims. The Government will consult on the detail of these reforms in due course and the consultation document will be accompanied by an impact assessment.
(2) what estimate his Department has made of the effect on insurance premiums of personal injury insurance fraud in the last year for which information is available; and if he will make a statement;
Jim Fitzpatrick:
(2) what estimate his Department has made of the effect on insurance premiums of personal injury insurance fraud in the last year for which information is available; and if he will make a statement;
Jim Fitzpatrick:
The Government is committed to turning the tide on fraudulent personal injury claims. To this end, it is considering what specific reforms might be appropriate, including whether the Law Commission should be asked to consider this issue. We will make our conclusions known in due course.
No figures are available on the number of exaggerated or fabricated personal injury claims struck out by the courts. Figures for 2011 published by the Association of British Insurers (ABI) indicate that whiplash claims cost customers more than £2 billion a year and add £90 to the average motor insurance premium.
The ABI describe 7% of all motor claims in 2011—worth £441 million—as fraudulent. In addition, they estimate that a further £1 billion of motor insurance fraud went undetected in 2011.
As announced last year, we are working with stakeholders in the industry to tighten the medical evidence process so that only evidence from accredited experts can be considered, and the costs for those reports can be fixed. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. We are introducing these reforms later in the year. We are also working to secure better data on motor accident cases, including the number of fraudulent cases.
(3) how many insurance fraud cases were struck out due to exaggerated or fabricated personal injury claims in the last year for which figures are available;
Jim Fitzpatrick:
(3) how many insurance fraud cases were struck out due to exaggerated or fabricated personal injury claims in the last year for which figures are available;
Jim Fitzpatrick:
The Government is committed to turning the tide on fraudulent personal injury claims. To this end, it is considering what specific reforms might be appropriate, including whether the Law Commission should be asked to consider this issue. We will make our conclusions known in due course.
No figures are available on the number of exaggerated or fabricated personal injury claims struck out by the courts. Figures for 2011 published by the Association of British Insurers (ABI) indicate that whiplash claims cost customers more than £2 billion a year and add £90 to the average motor insurance premium.
The ABI describe 7% of all motor claims in 2011—worth £441 million—as fraudulent. In addition, they estimate that a further £1 billion of motor insurance fraud went undetected in 2011.
As announced last year, we are working with stakeholders in the industry to tighten the medical evidence process so that only evidence from accredited experts can be considered, and the costs for those reports can be fixed. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. We are introducing these reforms later in the year. We are also working to secure better data on motor accident cases, including the number of fraudulent cases.
(5) if he will make resources available for a project by the Law Commission investigating the question of fraud by victims of personal injury;
Jim Fitzpatrick:
(5) if he will make resources available for a project by the Law Commission investigating the question of fraud by victims of personal injury;
Jim Fitzpatrick:
The Government is committed to turning the tide on fraudulent personal injury claims. To this end, it is considering what specific reforms might be appropriate, including whether the Law Commission should be asked to consider this issue. We will make our conclusions known in due course.
No figures are available on the number of exaggerated or fabricated personal injury claims struck out by the courts. Figures for 2011 published by the Association of British Insurers (ABI) indicate that whiplash claims cost customers more than £2 billion a year and add £90 to the average motor insurance premium.
The ABI describe 7% of all motor claims in 2011—worth £441 million—as fraudulent. In addition, they estimate that a further £1 billion of motor insurance fraud went undetected in 2011.
As announced last year, we are working with stakeholders in the industry to tighten the medical evidence process so that only evidence from accredited experts can be considered, and the costs for those reports can be fixed. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. We are introducing these reforms later in the year. We are also working to secure better data on motor accident cases, including the number of fraudulent cases.
(6) what estimate his Department has made of the scale of (a) detected and (b) undetected insurance fraud in the last year for which figures are available;
Jim Fitzpatrick:
(6) what estimate his Department has made of the scale of (a) detected and (b) undetected insurance fraud in the last year for which figures are available;
Jim Fitzpatrick:
The Government is committed to turning the tide on fraudulent personal injury claims. To this end, it is considering what specific reforms might be appropriate, including whether the Law Commission should be asked to consider this issue. We will make our conclusions known in due course.
No figures are available on the number of exaggerated or fabricated personal injury claims struck out by the courts. Figures for 2011 published by the Association of British Insurers (ABI) indicate that whiplash claims cost customers more than £2 billion a year and add £90 to the average motor insurance premium.
The ABI describe 7% of all motor claims in 2011—worth £441 million—as fraudulent. In addition, they estimate that a further £1 billion of motor insurance fraud went undetected in 2011.
As announced last year, we are working with stakeholders in the industry to tighten the medical evidence process so that only evidence from accredited experts can be considered, and the costs for those reports can be fixed. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. We are introducing these reforms later in the year. We are also working to secure better data on motor accident cases, including the number of fraudulent cases.
(7) if he will request that the Law Commission undertake a law reform project on the question of fraud victims of personal injury as part of its 12 programme of law reform.
Jim Fitzpatrick:
(7) if he will request that the Law Commission undertake a law reform project on the question of fraud victims of personal injury as part of its 12 programme of law reform.
Jim Fitzpatrick:
The Government is committed to turning the tide on fraudulent personal injury claims. To this end, it is considering what specific reforms might be appropriate, including whether the Law Commission should be asked to consider this issue. We will make our conclusions known in due course.
No figures are available on the number of exaggerated or fabricated personal injury claims struck out by the courts. Figures for 2011 published by the Association of British Insurers (ABI) indicate that whiplash claims cost customers more than £2 billion a year and add £90 to the average motor insurance premium.
The ABI describe 7% of all motor claims in 2011—worth £441 million—as fraudulent. In addition, they estimate that a further £1 billion of motor insurance fraud went undetected in 2011.
As announced last year, we are working with stakeholders in the industry to tighten the medical evidence process so that only evidence from accredited experts can be considered, and the costs for those reports can be fixed. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. We are introducing these reforms later in the year. We are also working to secure better data on motor accident cases, including the number of fraudulent cases.
(4) if he will take steps to reform civil procedure rules in a similar manner to the Republic of Ireland's Civil Liabilities and Court Act 2004 to tackle third party insurance fraud;
Jim Fitzpatrick:
(4) if he will take steps to reform civil procedure rules in a similar manner to the Republic of Ireland's Civil Liabilities and Court Act 2004 to tackle third party insurance fraud;
Jim Fitzpatrick:
The Government is committed to turning the tide on fraudulent personal injury claims. To this end, it is considering what specific reforms might be appropriate, including whether the Law Commission should be asked to consider this issue. We will make our conclusions known in due course.
No figures are available on the number of exaggerated or fabricated personal injury claims struck out by the courts. Figures for 2011 published by the Association of British Insurers (ABI) indicate that whiplash claims cost customers more than £2 billion a year and add £90 to the average motor insurance premium.
The ABI describe 7% of all motor claims in 2011—worth £441 million—as fraudulent. In addition, they estimate that a further £1 billion of motor insurance fraud went undetected in 2011.
As announced last year, we are working with stakeholders in the industry to tighten the medical evidence process so that only evidence from accredited experts can be considered, and the costs for those reports can be fixed. This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve. We are introducing these reforms later in the year. We are also working to secure better data on motor accident cases, including the number of fraudulent cases.
[Relevant documents: Seventeenth Report of the Transport Committee, Air Travel Organisers’ Licensing (ATOL) Reform, HC 1798, and the Government Response, HC 557.]
[Relevant documents: Seventeenth Report of the Transport Committee, Air Travel Organisers’ Licensing (ATOL) Reform, HC 1798, and the Government Response, HC 557.]