Whereas we’re fully conscious concerning the ever rising motor insurance coverage premiums within the UK, we could have by no means dug deeper into the explanations or, have simply accepted that it’s the whiplash or fraud claims that leads to hikes within the premium charges. Furthermore, pretty much as good and sincere drivers we’ve taken the position of the sufferer and blame a couple of who’ve the behavior of faking motor accidents to get their claims accepted.
Effectively, this may be only one facet of the story and insurance coverage holders have most likely by no means tried to see the opposite facet. Though, persons are paying a median of 8% annual enhance in automotive insurance coverage premiums, which equals to round £629, there appears an absence of investigating issues past what comes up entrance. Nonetheless, the legislation agency Thompsons Solicitors has introduced forth some startling factors which can uncover insurance coverage firms.
The legislation agency says that there have been no evidences from the motor insurance coverage trade concerning the fraud claims. It additionally claims that the insurance coverage trade talks about “fraud pandemic” but when we have a look at the statistics of earlier 5 years then claims funds has fallen by a excessive margin. In actual fact, within the final 5 years funds for insurance coverage claims have decreased by 30%. It prompt that in 2010, the insurance coverage trade paid £8.3billion whereas the final yr’s funds equalled to £5.8bn.
Thompsons Solicitors raised a query on the explanations behind the 8% enhance in common premiums whereas the trade is paying a lot much less to the coverage holders. Furthermore, the shareholders are having fun with ‘large dividends’ which can’t be the case if the trade is shedding out of cash.
The top of the agency Tom Jones identified that “In our view, fraud is being cynically exaggerated to assault the rights of sincere motorists and to justify premium will increase. It’s excessive time that the insurance coverage trade stopped their manufactured hysteria about fraud and focused on offering better transparency so shoppers can see if the ever-growing premiums are justified.”
This alarming revelation by Thompsons Solicitors is an eye fixed opener and means that we have to see the opposite facet of story as properly