BLM supports Aviva Road to Reform campaign

11 Mar 2015
BLM fully supports the Road to Reform campaign from Aviva. The highly anticipated report commissioned by the insurer, published today [12 March] concludes that fundamental reform is needed to reduce the number and cost of whiplash claims. In turn, these measures will reduce the cost of motor insurance for the long term.
 
Within the detail of the report, it quotes that:
 
The UK is on track to submit more than 840,000 motor injury claims*** to the Claims Portal for the year ending April 2015, or 2,300 claims every day. This is up 9% on the previous year - or 200 extra claims per day.
 
Aviva analysed the motor injury claims it received in 2014 and found that 80% included whiplash, a significantly higher figure than seen in many other European countries. One of the reasons for the high number of whiplash claims is the huge financial incentives for the third parties who submit the claims. Aviva’s data shows that 96% of personal injury claims it received last year were brought by third parties such as claims management companies (CMCs), personal injury lawyers and alternative business structures (ABS).
 
Terry Renouf, partner at BLM, said: “These proposals look to take costs and complexity out of the claims process. Transparency and other measures to ensure fairness and consumer protection will ensure any resultant changes are balanced. A simpler claims environment will assist consumers to secure redress sooner. Injuries should be treated quickly, claims should be notified quickly and straightforward ones resolved quickly. We all know that awareness of the right to claim is high and that stale cases are hard to investigate, so surely looking seriously at limitation periods is the right thing to do?”
 
To view the report from Aviva, please click here.
 

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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