MPs urge insurers to confirm whiplash and stop fraud

Fri Jul 4, 2014 12:50am BST

Pedestrians carry umbrellas on a rainy day in London May 27, 2014. REUTERS/Neil Hall

Pedestrians carry umbrellas on a rainy day in London May 27, 2014.

Credit: Reuters/Neil Hall

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(Reuters) - Insurers in the United Kingdom should be banned from settling any whiplash injury damage claims without first asking for a proper medical examination in order to limit fraudulent claims, according to a report by MPs.

The government should also stop personal injury lawyers from offering inducements such as cash or tablet computers meant to encourage injured drivers to make claims, the report published by the House of Parliament's transport committee, a cross-party team of MPs, said on Friday. (bit.ly/VjQ1Yk)

The report is part of the government's effort to bring down the cost of keeping vehicles on the road.

According to data from the Association of British Insurers (ABI), an insurance body whose members manage assets worth a quarter of the UK economy, fraudulent motor insurance claims were the most expensive and common types of claims.

Fraudulent motor insurance claims spiked 34 percent in 2013), the ABI said. (bit.ly/1pDFxMX)

(Reporting by Esha Vaish and Karen Rebelo in Bangalore; editing by Andrew Hay)

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