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Ministry of Justice aims to reduce the cost of motor insurance.

Ministry of Justice aims to reduce the cost of motor insurance. (1) - Forums [Biker Match] Ministry of Justice aims to reduce the cost of motor insurance. (1) - Forums [Biker Match]
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Ministry of Justice aims to reduce the cost of motor insurance.

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FROM THE MINISTRY OF JUSTICE WEBSITE. Whiplash consultation response highlights plans to help motorists cut costs.(23 October 2013) Following a Ministry of Justice consultation that looked at the number and cost of whiplash claims, suspected bogus compensation claims will now be targeted by new independent medical panels. This will ensure only evidence from accredited professionals can be considered. People will no longer profit from exaggerated or fraudulent compensation claims (which have helped to force up average motor insurance premiums) and victims with genuine cases can still get the help they need.The consultation response formed part of a wider Government announcement today designed to help motorists to cut the cost of running a car. These include a freeze on MOT test prices and a scheme designed to reduce the cost of fuel at motorway service stations.Average motor insurance premiums have already fallen by more than 12% over the past year, equivalent to an £80 reduction on an average policy, thanks to MoJ reforms to no-win, no-fee deals and action on rogue claims firms - according to new statistics from the AA.Justice Secretary Chris Grayling said:"We are turning the tide on the compensation culture and helping hardworking people by tackling high insurance premiums and other motoring costs."It's not right that people who cheat the insurance system get away with it while forcing up the price for everyone else - so we are now going after whiplash fraudsters and will keep on driving premiums down."The Government will now work with experts to rapidly implement the independent medical panels. This will include developing a scheme for accrediting medical experts who can assess whiplash injuries, enhancing the medical reporting process, improving information for medical assessments and carrying out spot checks to ensure quality. These improvements will be introduced from next year. ******** Ministry of Justice drives down cost of motor insurance premiums.(04 August 2014) The fees for whiplash medical reports will be cut in the latest stage of the MoJ's efforts to tackle insurance fraud and turn the tide on the growing compensation culture.The change forms part of MoJ's drive to help build a legal and rights framework that is clear and proportionate and is one of a number of new measures to drive out dishonest whiplash claims. It will bring down the amount being paid out unnecessarily by insurance companies on fraudulent claims and enable them to pass on savings to honest customers.It follows major reforms to the laws around no-win no-fee deals, which the AA say have been responsible for a record £120 (19%) drop in the average motor insurance premium over the past year, shown in their newly released figures.The new measures have been announced at the same time as more law changes to tackle the compensation culture are progressing through Parliament (in the Criminal Justice and Courts Bill). These include banning law firms from offering incentives to potential clients and allowing the courts to throw out any compensation case where part of the claim has been proved to be fundamentally dishonest.This will prevent people who have had an accident from exploiting the system by making bogus claims or grossly exaggerating the extent of their injuries. There are around half a million whiplash claims each year - and insurers estimate they add £90 a year to the average motor insurance policy.From October the new rules will mean medical professionals can only charge £180 for an initial whiplash report, reflecting the time taken to carry out assessments and write them up. Currently, prices of up to £700 are charged, leading to concerns that they are being used to generate profit.Justice Secretary Chris Grayling said:"Honest drivers have been bearing the cost of a system that has been open to abuse and it is time for a change."We are determined to have an improved, robust system for medical evidence - so genuine claims can still be settled but fraud is driven out of the market."Work is also ongoing on the next phase of reform to introduce accreditation for experts who provide whiplash reports and to establish greater independence in the market, as in the past there have been questions over the impartiality of medical experts, claims firms and others involved in producing reports.

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