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PM pledges to reduce cost of motor insurance

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David Cameron has promised to take action to reduce whiplash claims with a view to bringing down the cost of car insurance premiums.

According to insurance companies, the UK has become the ‘whiplash capital’ of Europe, with these claims costing the industry £2bn a year and adding £90 to the cost of the average insurance policy.

The cost of motor insurance rocketed by 40% in the year to March 2011.
David Cameron is hosting a meeting today at number 10 with insurance companies and consumer groups to discuss ways to reduce costs.

The Commons Transport Select Committee recommended in January that the government should introduce primary legislation to require objective evidence – both of a whiplash injury and of it having a significant effect on the claimant’s life – before compensation is paid.

According to MPs the number of motor insurance injury claims has leapt by 70% in the last six years, despite the number of casualties caused by road accidents falling 23%.
Whiplash claims, which currently do not require medical evidence in the UK, accounted for 70% of the claims.

Insurers are calling for the adoption of measures similar to those already in place in Germany where there is a 10kph (6.25mph) threshold for whiplash claims.
Drivers in Germany also have to obtain two medical opinions to diagnose the injury.


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