The
UK is well-known as the "whiplash capital of Europe" because anybody
can get guaranteed recompense if they can prove they have whiplash injuries.
The number of personal injury claims for whiplash had increased in the UK,
forcing the insurance industry to pay more than £2bn yearly, which passes down
to legitimate consumers who are paying £90 in addition to their premiums.
Chancellor
George Osborne had decided towards eliminating the right to claim personal
injury on soft tissue "minor" injuries from motor road accidents as
well as whiplash. The Chancellor also aims to introduce a higher limit to the
Small Claims Court from £1000 to £5000.
However,
this was met with criticism from the Select Transport Committee, who said that
individual victims may not represent themselves properly in court. The voice
was second-motioned by the Law Society.
The
Treasury said that the amount paid per policy was "out of proportion to
genuine injury suffered." The Chancellor intends to make a system to avoid
exaggerated claims and to end the right to cash compensation.
The
STC also condemned the proposal for only consulting with insurers and not the
victims of personal injuries, particularly whiplash injuries.
