The government has claimed motorists could save £35 per year on the cost of car insurance following the introduction of new rules designed to reduce the number of fraudulent road accident claims.
As part of the reforms, there will be a simplified process for making accident claims online that are under £5,000, removing the need for lawyers.
Medical evidence will also be mandatory for all future whiplash claims.
The Ministry of Justice claimed insurers have pledged to pass on the savings to drivers, estimating they are worth £1.2 billion.
“For too long, the system for making whiplash claims has been open to abuse by individuals looking for an easy payday – with ordinary motorists paying the price,” said Lord Chancellor Robert Buckland.
“Our changes, which come into force today, will put an end to this greedy opportunism and ultimately see savings put back into the pockets of the country’s drivers.”
However, accident management company Call Brian hit out at the changes and accused the government of making things overly complicated for motorists involved in accidents.
It said it is not being made clear to motorists that they will need to understand a 64-page legal guide, adding they will also need knowledge of the MedCo system – which is used to facilitate the sourcing of medical reports in soft tissue claims brought under the Ministry of Justice.
“Firstly, Brits are expected to fork out for costly legal fees if they want to add any kind of professional legal weight to their claims, then you’re expecting them to become theoretical and medical experts just to get the compensation they deserve,” said Colin Shaw, the CEO of the firm.
“And even then, there’s no guarantee of winning, so everyone, not just motorists, will be left out of pocket under this new system.”
“I just can’t see how it’s going to work at all and feel it will become a real health and financial headache for already stress-induced Brits battling the effects of the pandemic.”
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