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Driving Out Compensation Culture


The UK’s compensation culture is again causing a rise of bogus injuries, ‘crash for cash’ scams, nuisance texts/calls from claims management companies, profiteering lawyers, and fraudsters abusing the system for their own financial gain.

Aviva has recently published their next ‘Road to Reform’ report. The proposed tactics are based on further research into fraudulent whiplash claims and solutions adopted by other countries. Their aim is to cut motor insurance whilst ensuring a genuinely injured party gets the care and compensation they deserve.

  •  Reduced Limitation Period: All whiplash/soft tissue claims should be made within 12 months of the accident.
  • Time Limits and a Threshold: Symptoms must be more than ‘trivial’ or ‘nuisance’ and last longer than 3 months. The period and extent of suffering must be evidenced by treatment/medical records.
  • Rehabilitation: Insurers should provide treatment to their policyholder/injured party of up to 3 months, regardless of who is at fault.
  • Medical Evidence: An independent medical report should be obtained by the claimant from MedCo (a new IT Portal system for sourcing medical reports, funded by insurers) between 3-12 months after the accident for whiplash/soft tissue injury claims where the symptoms persist beyond 3 months post-accident.
  • Level of Disability: All medical reports obtained via MedCo should assess the % of disability caused. Compensation is only recoverable where the report shows actual evidence of the injury and level of impairment caused.
  • Predictable Damages: A clear, transparent, fixed damages tariff should be introduced for whiplash-type injuries, to make it clear what the claimant is likely to be rewarded and cut down unnecessary legal arguments.

The reality of the claimant culture really does need to be addressed as motor insurance could become so expensive that some people will be excluded from being able to obtain it. Aviva is urging the Government to address these issues and consider their calls for action.

MRIB supports this stance and is working with insurers, as we embrace technology to tackle these issues we face.

Road to reform

For more information, please do not hesitate to contact MRIB:

Call: 01494 455 666