Insurance analysts have recently revealed that there’s been a sharp rise in the number of people claiming for car accident compensation in the UK over the past 12 months, despite a drop in the number of accidents happening in the country. The annual report, which was published by the Actuarial Profession has revealed that, in spite of a decrease of around 11 per cent in the number of car accidents in the UK in 2011, car accident compensation claims have risen by some 18 per cent. It is estimated by the Actuarial Profession that these extra car accident compensation cases cost the insurance industry an additional £400 million per year, a figure which is being partially blamed for the increase in motor insurance premiums since the economic downturn kicked it. The government is currently formulating ideas in order to limit the amount of money which a personal injury claims firm can make from no win no fee cases. The Law Society of the UK has had to step in to ensure that the government does not make any brash decisions and put car accident compensation solicitors out of business.
The legislation was announced in 2011 by the Justice Secretary of the time, Kenneth Clarke, in order to prevent lawyers from claiming excessive success fees from the side of losing car accident compensation cases. Instead, they would receive a share of the compensation money won by the claimant. The proposals come in the wake of a review which was carried out by Lord Justice Jackson in 2010 at the request of the UK’s previous administration.
The legal system changes also aim to prevent the insurance companies and others from passing on motorist’s details following car accidents without their consent, a move which is clearly in violation of the Information Commissioner guidelines. These are guidelines which car accident claims management companies, personal injury law firms and insurance companies adhere to alike. At this stage, a report expected to be published in October by the Transport Committee will look into further areas of the cause in rising insurance premiums and increased car accident compensation claims. There are a great many factors at play and not just the increase in car accident compensation claims that are affecting the increased insurance premiums. It’s widely suspected that the insurance companies themselves are largely to blame but at this stage there is a great deal of speculation. It can only be hoped that car accident cases will be reduced in the coming years.