Motoring|

MPs Call for Insurance Providers to Tackle Fraud Claims

In a report by the House of Commons Transport Committee, they found that the cost of motor insurance is being driven up by fraud, including fake accidents. They recommend that the insurance industry fund a police unit dedicated to cracking down on false car insurance claims, as well as take steps to make the habit of insurance claim referral payments more transparent. The MPs are also urging the government to make the driving test more rigorous in order to help cut the number of young motorist casualties.

The Automobile Association (AA) supplied evidence to the committee, reporting that average premiums quoted to motorists for comprehensive coverage has risen 29.9% in the year ending October 2010. More plainly, it has added £40 a year to average premiums.

Committee chairman Louise Ellman said that broader access to justice is welcome, but it comes at a significant cost, as far more personal injury claims are being made than before. Police have clearly told the committee that the number of staged accidents is increasing, and they have been lucky there haven’t been any fatalities as a result of these. This luck could run out unless the insurance industry reacts quickly to help target this kind of fraud, she added.

Ellam also said that the commitment of the government to make the driving test more rigorous is welcome. However, these proposals have been around for years, so what matters is that a consultation is published for the changes they want to make, along with a timetable to implement them before the next election, she added.

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