Referral fees banned with immediate effect by AXA and Swiftcover
Tuesday, 26 July 2011
AXA has voluntarily banned referral fees from personal injury lawyers with immediate effect and called for whiplash damages reform in the UK.
The company noted that in recent years the 'compensation culture' has played a major part in increasing motor insurance premiums. As part of the global AXA group, Swiftcover are also taking this stance.
Furthermore, AXA estimates that around half of the recent increases in the cost of car cover are related to the rise in bodily injury claims.
Paul Evans, group chief executive at AXA UK, said: "It is unfair and unsustainable that drivers are being disadvantaged by exaggerated injury claims which drive up the cost of insurance.
"Referral fees have only served to promote an even greater number of injury claims and AXA will stop this practice whilst government implements the necessary legislation to restore order."
Recently, AXA research revealed that rising petrol prices in 2011 have meant over a quarter of motor insurance customers have reduced their car usage in the early part of 2011.
Posted by Claire Carter
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