Government plans to cut whiplash injury claims

http://www.guardian.co.uk/money/2012/dec/11/government-plans-cut-whiplash-claims

Chris Grayling

Because of many whiplash claims, the insurance premiums keep rising. According to justice secretary, Chris Grayling, a lot of claims are not genuine. New independent medical panels will diagnose whiplash injuries, which will mean that exaggerated, misrepresented or fraudulent claims can be denied. Even though the reported accidents have been reduced with 20%, there is a 60% rise in claims. These extra claims add an extra of 90 pounds to the insurance premiums every year. Grayling said: “For too long honest drivers have been bearing the price of a system that has been open to abuse and it is time for that to change.”

I think it is good that the government wants to take action against false claims. Nevertheless, I cannot stop thinking about how much this will cost the government. I am afraid that if they have to check 1,500 claims every day, it will cost a lot more than it will gain. I think it is better if they set a fine on a false claim. In this way only the genuine claims will be submitted. Medical panels can also be paid by money from the insurance premiums. Unfortunately in this scenario, honest motorist will pay as well for false claims.