Motor insurance 'being affected by fraud'

Tuesday, 15 March 2011

Fraud is one of the major factors driving up the cost of motor insurance, according to the Transport Select Committee.

In the House of Commons, the committee said that, although wider access to justice is available for drivers, it should not mean that they make false personal injury claims on their motor insurance policies.

One of the committee's recommendations is to set up a dedicated police unit, paid for by the insurance industry, to tackle the escalating problem.

Louise Ellman, chair of the transport committee, said: "Wider access to justice is to be welcomed, but it has come at a significant cost, with far more personal injury claims being made than in the past."

She added that the police made it clear to the committee that there had been a significant increase in staged accidents and, so far, luckily there have been no fatalities.

Furthermore, the committee wants the government to set out a clear timetable for new data sharing arrangements between the Driver and Vehicle Licensing Agency and motor insurance providers.

Recently, motorists have seen a rise in fuel prices and are faced, for the first time, with the average cost of £6 per gallon at garage forecourts.

Posted by Claire Carter 

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