UK EXPECTS £1BN INSURANCE SAVING AS WHIPLASH REFORMS IMPLEMENTED

The cost of motor insurance is expected to fall following the implementation of personal injury claims reforms on Monday. Reforms to the Civil Liability Act implemented on May 31 are intended to reduce the cost of low value personal injury claims and deter fraudulent and exaggerated motor claims. Insurers have pledged to pass on the expected savings of £1.2bn per year. The changes included a ban on settling whiplash cases without medical evidence and an online portal for road traffic accident claims under £5,000. The latest figures for 2020 show that there were 650,000 road traffic accident claims of which 550,000 were whiplash related.