Car accident compensation claim.

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Some car insurance companies are charging “eye-watering” fees on top of annual premiums, according to the consumer organisation, Which? in a recent study

It found that some insurance companies charged up to £75 for cancelling a policy – even in the cooling-off period. Others charge £50 to renew a policy or £30 for duplicate documents.

In response, the industry argued that overall premiums had fallen and that the market was highly competitive.

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whiplash

The AXA man and the Straw man claim there is no such thing as whiplash in the land of Oz….

Apparently, a few days ago, in the mythical land of Oz, the AXA man (distant relation to the Tin man) and the Straw man presented a wizard idea to an invited audience. ‘There is no such thing as whiplash’, they declared, ‘even if it existed, which it doesn’t, it doesn’t hurt. If you think something might be wrong and if you hurry, you can see one of our approved doctors over in Munchkin Land who will tell you how to get back to work asap. Naturally, the Wizard will not be paying compensation under any circumstances – premiums are high enough around here, what with accidents happening every day.’

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Secrets and lies – The dysfunctional car insurance meerkat (and other animals)

Secrets and lies - The dysfunctional car insurance meerkat (and other animals)

BBC Images

Monday’s Dispatches investigation on Channel 4, presented by Harry Wallop certainly packed a punch and was a welcome riposte to the insurance lobby’s PR deluge of misinformation, miscreancy and mendacity.

We hope it is the first of many broadsides in the fight to redress the balance in favour of the British public’s entirely reasonable expectation to be treated fairly by some of the world’s largest corporations.

Not much to ask you would think but these guys have had it their own way for so long now and have so successfully weasled their way into government circles that they are setting the insurance agenda for all of us. A concerted effort by the concerned is required NOW to identify the real villains of the piece and the true insurance scammers operating in this dysfunctional market.

In our opinion this documentary was a good first step because it exploded the myth that insurance companies are primarily concerned about us, their customers.

The film absolutely nailed the point that the insurance companies and accident management firms are only concerned about maximising their profit margins as they pressurise motorists to deal with their ‘approved’ body shops and pressurise the garages to carry out work at minimal cost., often using non-standard parts.

Now this would not in itself be such a problem if savings were shared between insurance companies and policy holders and work was carried out to a high standard but this does not happen…and our premiums go up and up.

Evidence from experienced people in the trade confirmed that the pressure insurance companies put on body shops to cut costs compromises the integrity of the damaged vehicle and the safety of the driver and their family.

The story gets worse.

If a driver is involved in a no-fault accident his/her insurance company will seek to max out the ‘value’ of the claim by shamelessly inflating the cost of the repairs and hitting the other side for all they are worth….and who pays for this?

Correct. We do every day.

Whilst the insurance companies are busy portraying themselves as ‘holier than thou’ and the nation’s protectors of the vulnerable, they are busily scamming the market for every penny they can extract from supplier rebates and other kickbacks and exploiting their customers without any regard to the principles of good business practice, far less business ethics.

The insurance companies then have the bare-faced audacity to stuff their own pockets with all this extra ‘bunce’ and then claim that innocent accident victims who have the temerity to claim compensation are responsible for the hike in premiums which the Office of Fair Trading (OFT) states are inflated to the tune of at least £250m per annum by the industry’s own malpractices.

Their underhand tactics have thankfully not gone completely unnoticed. The OFT has announced that it will be investigating the insurance market, despite the best efforts of a toadying government to foster the myth of a compensation culture and agree to virtually everything the Association of British Insurers (ABI) has demanded in recent years.

In typical weasel word fashion, as befits its modus operandi, the ABI claims that it welcomes an investigation. Aye right, we’ll see…as we live in hope.

Meanwhile, we are still waiting for the ABI to explain why its members are paying out on claims known to be fraudulent.

If a claim is known to be fraudulent why does the industry not take action to prosecute the fradusters? The conclusion must be that the insurance companies are spending a hefty chunk of our car insurance premiums on fraudulent claims. Perhaps the ABI’s Nick Starling can explain why this SCANDAL is allowed to go on unchecked.

Could it be that there are far fewer fraudulent claims than suits the ABI position and that the creation of the ‘bogeyman’ of an insurance fraudster is a very useful whipping boy when it comes to peddling lies about whiplash claims and the impact on premiums?

We will be asking the OFT to look at this matter very closely…and checking with Harry Wallop to see if he is planning to look at the government’s and the insurance industry’s perverse approach to dealing with personal injury claims.

Written by Andy Thorogood, Business Development Manager, Bonnar Accident Law. 

 

Outrageous claims by insurers go unchallenged by supine MoJ

Outrageous claims by insurers go unchallenged by supine MoJ

The most outrageous claims pertaining to the debate on whiplash injuries are those being made by the insurance industry and government ministers seemingly hell-bent on creating a benign regulatory environment for businesses coupled with a full-frontal assault on the mythical compensation culture.

We say mythical because the two major studies carried out by this administration to examine the so-called compensation culture have both concluded that that the very notion of a compensation culture in the UK was misguided, erroneous and intrinsically flawed. 

Lord Young of Graffam’s ‘Common Sense, Common Safety’ and Professor Ragnar Lofstedt’s aptly named ‘Reclaiming health and safety’, independently concluded that the problem was more a figment of the media’s imagination and there was no evidence to suggest otherwise. Professor Lofstedt went so far as to publicly declare he was very uneasy and dismayed that his report was being misused to prop up government policy on health and safety in the UK.  

However, rather than let the independently researched facts get in the way of a good populist crusade, Prime Minister David Cameron has vowed to take on the ‘compensation culture.’       

Echoing the PM’s call to arms against accident victims seeking justice, none have risen to the challenge more enthusiastically than the nation’s insurance companies who have been invited to Number 10 twice already this year (most recently on 2nd May) to discuss how the government can help them reduce their costs and increase their profits. Incidentally, the government refused a request from The Law Society to be represented at these meetings and we can only wonder why…

Take a bow gentlemen and ladies of the insurance lobby for verily your occupation of the moral high ground on the matter of car insurance premiums is truly mind-boggling.   

For example, Head of Motor and Liability at the Association of British Insurers (ABI) James Dalton commented recently that:

‘If whiplash were an olympic sport, the UK would be gold medallists. The fact that whiplash is virtually impossible to disprove means that for too many it has become the fraud of choice, often aided and abetted by ambulance-chasing lawyers and claims management firms.’ 

Nick Starling,ABI Director General welcomed the PM’s intervention and claimed that:

‘Insurers are being swamped with exaggerated or even fraudulent claims. There is no medical diagnosis for whiplash and if an insurance company wants to challenge a whiplash claim it has to effectively say someone is lying to them.’ 

Well my goodness me. Imagine a world where an insurance company pays out on an insurance claim because it doesn’t want to upset the claimant. It might happen someday…you think?

Is Nick Starling actually saying that the insurance companies are simply paying up on whiplash claims? If so what does this tell us about:

a) the current profit margins in the insurance industry if it can afford to cough up on the simple ‘say so’ of the claimant.

b) the level of sheer unadulterated laziness and lack of attention to proper procedure in the insurance industry if it allows fraudulent claims to go unchallenged.

IF NICK STARLING KNOWS THE CLAIMS ARE FRAUDULENT WHY ON EARTH ARE THE INSURANCE COMPANIES PAYING OUT?   

It’s our money THEY are wasting!

Not to be outdone in the ‘heaping opprobium on the heads of accident victims and their families stakes’, government ministers have been lining up to place a well-aimed boot in the soft tissue of Access to Justice in the UK. 

Justice Secretary Ken Clarke has stated that :

‘It is scandalous that we have a system where it is cheaper for insurers to settle a spurious whiplash claim out of court than defend it, creating rocketing insurance premiums for honest drivers.’

Dear Ken,

Ask the ABI why it settles spurious claims.While you’re at it, why not ask how the insurance companies know which claims are spurious.

Last year, it was disclosed that Justice Minister Johnathan Djanogly’s two children each held shares in the claims management companies Going Legal and Legal Link Introductory Services, which solicit people who might have a compensation claim and then sell their details to lawyers.

Mr Djanogly had admitted that his brother-in-law, Ben Silk, owned the companies, but had not disclosed his children’s shareholdings.

Dear Johnathan,

Why are you still driving changes that will disadvantage the British public whilst benefitting your family? 

Last week Mr. Djanogly admitted the government would promote ‘Before The Event’ (BTE) insurance as a way of funding legal expenses and predicted the cost of such cover would come down.

Labour says annual premiums could be £150, amounting to a tax on justice that would reap big profits for the insurance industry. An internal industry analysis shows insurers stand to gain £1 in profits for every £2 of premium payments.

 

Our concerns:

We now have a situation in this country that the government of the day refuses to pay heed to the findings of its own reports on health and safety and chooses to listen exclusively to the jaundiced views of the vested interest that is the insurance industry.

Genuine accident victims are being actively discouraged from making compensation claims by concerted and ill-founded media coverage coupled with government action on Legal Aid and access to justice.

Hurt and injured people are being bullied by well-funded and powerful insurance companies to accept low offers before they have had a chance to seek independent legal and medical advice in the erroneous belief that they will be out of pocket if they lose their case.

The public are being spoon fed a diet of misinformation about the impact of the so-called ‘compensation culture’ by the government and the insurance lobby.

The government is determined to reduce the ‘legislative burden’ on industry by reducing the scope of existing health and safety regulations.

The government wants us to buy MORE INSURANCE to fund potential claims.

The insurance industry wants to kill off ‘no win no fee’ legal firms because they help claimants fight for justice and fair compensation.

Insurance companies would prefer to see no claims – EVER, but given that some claims must get through their net, they would like to decide on the level of compensation themselves and pay whatever sum they see  fit. 

So, don’t get injured.

If you do get injured get independent legal advice – while you can.

 

…and remember insurance companies , like bookies, never lose.