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Motor insurers are encouraging fraud, say MPs

Motor insurers are encouraging fraudulent behaviour and exaggeration of claims, within their own business models, a group of MPs has reiterated.

A report from the Transport Select Committee into the cost of motoring insurance said there was surprising behaviour from firms who sometimes make an offer to personal injury claimants even before a medical report has been received.

The report focussed on how the cost of insurance is inflated by bogus whiplash claims.

MPs also criticised firms for ignoring calls for increased transparency on links with with solicitors, vehicle repairers, credit hire firms and other organisations from which they gained referral fees.

Amongst the recommendations set out in the report, the Committee suggested an accreditation scheme for medical practitioners who provide reports in whiplash cases, and indicated not all need to be doctors.

The MPs also said they were not in favour of claims between £1,000 and £5,000 being dealt with in the Small Claims Courts, an idea currently thought up by the Ministry of Justice.

This was posted in Bdaily's Members' News section by Tom Keighley .