UK Officially 'Whiplash Capital of the World'

posted on Feb 29 2016 by Karen Liggett

UK Officially 'Whiplash Capital of the World'

A report by Liverpool Victoria claims that the UK is the ‘Whiplash Capital of the World’. The insurer says that 78% of personal injury claims in 2014 related to whiplash and suggested many were fraudulent. This is compared to 65% in the US.

In recent years a new trend has caused claims management companies concentrate on persuading victims to request compensation, Liverpool Victoria says. During the last 2 years, victims typically received 5 calls/texts which said, in essence, “there is money waiting” - and 59% felt pressured to act.

Furthermore, 12% were contacted before reporting the collisions to the insurers which highlights how easily victim data can be traded. 


Government crackdown on whiplash claims

The government said in its autumn statement that it plans to crackdown on minor whiplash claims which should, in theory, reduce the typical cost of insurance, Liverpool Victoria says.

On this basis, it is calling on the government to also “quickly and comprehensively” implement recommendations of the Insurance Fraud Taskforce.


Whiplash capital of world title “unfortunate”

Liverpool Victoria GI Claims Director, Martin Milliner, says: "Whiplash capital of the world is an unfortunate moniker and not one we should be proud of. And it's UK motorists who are suffering by paying some of the highest prices for insurance in Europe”.

He continues: “For years, it's been a game of cat and mouse between the insurance industry and fraudsters - when what we need is a multi-pronged solution that will benefit the consumer once and for all. Government makes one change to the system and the fraudsters find a way around it, meaning further action is needed and fraud persists.” 

Mr Milliner continues: “Already we are noticing a rise in rehabilitation fraud, highlighting the need for swift implementation of the autumn statement reforms. The more time it takes to implement changes, the easier it makes it for fraudsters to find another loophole, hitting the pocket of the honest consumer.”

"We would like to see a quick and comprehensive response from government to implement all the Insurance Fraud Taskforce's recommendations”.