“Overwhelming majority of Brits” want to see further motor accident claim reform, claims Aviva

The “overwhelming majority of Brits” want the Government to further reform small soft tissue injury claims, according to research carried out by Aviva.

Aviva says that 83% of respondents to its survey would like to see George Osborne’s proposed small claim reforms, which he announced last November when he was still Chancellor, to be implemented. The reforms would see a rise in the small claims limit to £5,000 and an end to cash compensation for soft tissue injuries. The survey says that most respondents believe that the changes would lead to a drop in motor insurance premiums.

The insurance company has estimated that there would be a £43 cut to motor premiums if the reforms were to be implemented.

Figures from the ABI have shown that motor premiums continue to rise and are up 10% year-on-year.

Aviva said that back-to-back increases to insurance premium tax, from 6% to 10%, are partly behind the increase, but added that the cost of personal injury claims accounts for 49% of its claims costs. It warned that the claims were threatening to “push prices skyward”.

Maurice Tulloch, chairman global general insurance and CEO UK & Ireland general insurance, Aviva, said: “Our research shows that the British public is sick and tired of the toxic compensation culture that has increased premiums, fraud and nuisance calls. The Government has an historic opportunity to make a significant change that will cut the cost of motor insurance – and it is clear that the British public is fully behind the reforms.

“It’s time to stop the nuisance calls, stop crash for cash, stop spiraling claims that push up premiums, and stop the profiteering at the injured party’s expense. It’s time to end this compensation merry-go-round and cut the cost of motor insurance for us all.”

The full report can be accessed here.

Mark Dugdale