Whiplash insurance claims are to be wiped out in a move that is expected to save over £1bn a year.

The news follows George Osbourne’s Autumn Statement, which vowed to banish any over-exaggerated cash claims that aren’t deserved in a move that the Chancellor is expecting will save on average, between £40 and £50 annually on individual insurance plans.

The United Kingdom has been dubbed “the whiplash capital of Europe” with a staggering 1500 cases being reported every day. From now on those who have suffered from a minor car injury will be offered physiotherapy from their insurers instead of big cash payments. However serious injuries from car related collisions will still be paid out for.

The reason behind so many cases in the UK is suggested to happen because the very active claims management sector in the country encourages drivers to make false claims after an accident, because they are very hard to prove wrong.

Leading insurance providers Direct Line, Aviva and have all spoken about the decision – they aren’t expected to make a large profit from the new ruling which will come to force in April 2017.

According to The Telegraph, Direct Line said: “We have quite an extreme compensation culture in the UK both in terms of frequency and level of claims.”

London-based Aviva have compared the UK to France and the results are surprising.

They said that 80 per cent of UK motor claims are for whiplash and soft tissue injuries against three per cent in France and that they currently have 16,000 suspicious claims under investigation. have pointed out the potential gain for their customers by stating that customers in the UK would save around eight per cent on the cost of their annual polices.

Photo: Fotolia

Sophie Williamson Stothert


November 27, 2015