But what can be done about the people who make false claims which pushes up the cost of insurance for individuals and businesses?
It is reasonable that if someone else has been at fault and stopped you from working, there should be insurance cover in place, to at least pay you for the loss of your salary.
What isn’t reasonable or fair is where people try to make a claim when they haven’t really been injured.
Will the insurance summit help cut out the cheats?
Prime Minister David Cameron held an insurance summit to try to find a sensible way forward for the people who have a legitimate claim to ensure they can be fairly compensated and those that try to cheat the system with false claims can be cast aside.
Unfortunately, no one represented the views of consumers or accident victims at the summit.
The government reasoned that this insurance summit was designed to organise a commitment from the insurance companies to help get premiums reduced as a clear result of changes currently in progress or being considered.
Cynical people are concerned that just words came out of the summit and that no action will follow. The biggest unanswered question is all about who will regulate the new arrangements? Surely consumers won’t be faced with the insurance companies examining themselves?
While consumers will always want to see lower insurance premiums, everyone understands that insurance companies are out to make a profit, but they do need to pay out properly alongside legitimate claims.
Consumers and victim groups will get the chance to add their personal comments as the Department for Transport and the Ministry of Justice will be drawing up the detailed plans for any future changes.
Are claims increasing?
The Department for Work and Pensions’ compensation recovery unit has recorded that claims from motor accidents across the last five years have increased by 52%. The Department for Transport suggests that there are between 660,000 and 800,000 casualties on our roads, each year.
However, the Health and Safety at Work act appears to be working because employers liability claims have fallen by 17% to just over 81,000 per annum. Nevertheless, claims against public authorities have increased by 19% to almost 95,000.
In matters of no win no fee Scotland has an enviable record of treating every potential claimant’s application for compensation with complete fairness and sensitivity.
Obviously insurance companies would prefer to reduce the number of claims and the size of compensation packages, but this has to be balanced against the realistic losses that some people will suffer through an injury that was no fault of their own.
Sometimes people don’t know if their claim is potentially legitimate or not. If you’re uncertain, give us a call and we can talk it through properly, giving you our honest views straight away – simply put, it’s better to know either way, than not to claim because you think you might get turned down, something that could mean you lose out on thousands of pounds.