In a bid to tackle fake claims and the growing compensation culture, the government has announced plans to cut fees for whiplash medical reports in England and Wales. From October, medical professionals will only be allowed to charge £180 for an initial whiplash report – currently, prices of up to £700 are being charged: this will reduce the amount being paid by insurance companies for exaggerated claims.
There are around 500,000 whiplash claims each year – which insurance companies say add about £90 a year to the average motorist policy. This is good news for honest drivers who have been bearing the cost of a system that has been open to abuse. Road traffic accidents deliberately caused in order to claim for whiplash compensation increased by 51% in 2013, and this is good nail in the coffin of those hoping to defraud insurance companies.