Cameron calls on insurers to cut premiums
DAVID Cameron will today announce plans to reduce insurance premiums by cutting red tape, reducing legal bills and tackling the high number of spurious claims.
Proposals include a plan to reduce the number of whiplash claims by enforcing a higher evidence threshold for injuries and cutting the £1,200 fee that lawyers can earn for small personal injury cases.
He also wants to assist businesses facing trivial claims by extending the rigorous road traffic accident claims process to cover employer liability and public liability insurance.
The Prime Minister has summoned Britain’s leading insurers to Downing Street to discuss how such changes in government policy can be reflected in real decreases in the premiums paid by consumers.
Over 1,500 whiplash claims are made every day in Britain. According to the Association of British Insurers (ABI) this costs the industry £2bn and adds £90 to the average car insurance premium.
David Cameron will say: “I am determined to tackle this damaging compensation culture which has been pushing up premiums.”
Downing Street confirmed that companies represented at the summit will include Admiral, Aviva, AXA, Royal Bank of Scotland, USwitch and the Co-operative. The ABI, Health and Safety Executive and Federation of Small Businesses will also be present.