Car Insurance Due?
Car Insurance
Personal claims overhaul to cut motor cover costs
Thu, 15 Dec 2005
Costs of car insurance may fall under plans to revamp the personal injury claims system, it has been reported.
Next week an independent arbitration system will be called for by the Association of British Insurers (ABI); replacing the court case system currently in place for personal injury claims.
According to the ABI, this system overhaul will dramatically decrease the amount that insurers pay in legal fees and other costs, which currently comes in at a total of around £2 billion a year.
Costs of personal injury claims have been pushing up car insurance costs over the past few years. Under the new system, benchmarks for each category of injury would be set up by the arbitrator, keeping claim handouts at a reasonable pegging.
This would not cut compensation for genuine claimants however, the ABI was quick to stress: "Many genuine claimants are deterred from claiming because the system is slow and expensive," a spokesperson told the Telegraph.
"We believe the new system will dramatically speed up the time it takes to settle the average personal injury claim."
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