• Support for the reduction in the three year limitation period
• Calls for a maximum 90 day ‘whiplash’ reporting period to defendants
• Fundamental changes to the claims and medical reporting will be the biggest deterrent to fraudsters

Direct Line Group believes the Transport Select Committee’s (TSC) report on whiplash highlights the need for the Government to implement fundamental changes to medico-legal reporting to tackle exaggerated or fraudulent claims and enable a positive impact in terms of claims costs and ultimately premiums.

Direct Line Group’s own consumer research has revealed around one in eight (12 per cent) of people who have made an injury claim have either fabricated or exaggerated their injuries. This increases to nearly one in four (23 per cent) of those aged 18- 34. With the insurance industry dealing with circa 500,000 whiplash claims a year, this equates to 60,000 being fraudulent or exaggerated claims – one every 10 minutes.

Direct Line Group is calling for the following:

• To reduce the three year limitation period for whiplash claims.
• Introduce a maximum 90 day ‘whiplash’ reporting period to defendants.
• The Government to implement its proposals to raise the Small Claims Track (SCT) limit from £1,000 to £5,000 for RTA personal injury claims.
• The Government to implement its proposed accreditation scheme for medical practitioners who provide medical reports in relation to whiplash claims.

Steve Maddock, Managing Director of Claims at Direct Line Group, said: "The Transport Select Committee’s report highlights the need for a more rigorous medical process and tighter timescales on making a whiplash claim. This will help reduce fraud and speed up the process for those genuinely injured. However, the legal burden needs to be reduced as well and that is why we believe that increasing the threshold for claims referred to the small claims court from £1,000 to £5,000 is essential.”

1. To reduce the three year limitation period for whiplash claims
   We support the Government’s proposal to reduce the three year limitation period for whiplash claims. However, we believe this should be in conjunction with mandatory 90 day time limit for a claimant with whiplash to notify their intent to claim (see point two).
2. Introduce a maximum 90 day ‘whiplash’ reporting period to defendants.
   One difficulty insurers have in investigating whiplash claims given the lack of objective evidence, is that posed by a late notification of a claim. Whilst recognising the need to have a prescribed limitation period under the Limitation Act 1980, there would be considerable benefit to assist in the validation of claims if they had to be notified for investigation purposes within 90 days to the third party insurer. Early investigation would help identify valid claims and possible opportunities for rehabilitation. It would also assist in tackling exaggerated/ fraudulent claims which is not so readily possible in late reported claims.
3. The Government to implement its proposals to raise the Small Claims Track (SCT) limit for £1,000 to £5,000
   The TSC cited access to justice and the desire to assess the impact of other recently implemented reforms before raising the limit raising Small Claims Track for RTA personal injury claims. We note these concerns, however, we believe the time to move ahead with these proposals is now. Our own proposals submitted to the MOJ in our consultation response should allay these concerns.
   These include:
   • An agreed tariff of liability scenarios.
   • Increase usage of damages assessment software.
   • Increased guidance to unrepresented claimants as referred to by the TSC in their report.
4. Accreditation scheme for medical practitioners who provide medical reports in relation to whiplash claims.
   We support the Government’s proposal to that there should be an accreditation scheme for medical practitioners (who need not all be doctors) who provide medical reports in relation to whiplash claims. We also agree with the TSC, that a random audit is undertaken of at least a proportion of medical reports prepared each year.

-ENDS-

For further information, please contact:

Simon Henrick
Direct Line Group
Tel: 020 8313 5965
Mob: 07833 166717
Email: [email protected]

Direct Line Insurance Group plc

Direct Line Insurance Group plc (Direct Line Group) is headquartered in Bromley, Kent; it has operations in the UK, Germany and Italy.

Through its number of well known brands Direct Line Group offers a wide range of general insurance products to consumers. These brands include; Direct Line, Churchill and Privilege. It also offers insurance services for third party brands through its Partnerships division. In the commercial sector, its NIG and Direct Line for Business operations provide insurance products for businesses via brokers or direct respectively.

In addition to insurance services, Direct Line Group continues to provide support and reassurance to millions of UK motorists through its Green Flag breakdown recovery service and TRACKER stolen vehicle recovery and telematics business.