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Whiplash reforms could lead to spate of claims in Scotland, legal firm warns

Whiplash reforms could lead to spate of claims in Scotland, legal firm warns | Insurance Business

Whiplash reforms could lead to spate of claims in Scotland, legal firm warns
The government’s recently announced whiplash reforms could result in a spate of claims in Scotland, international law firm DWF has warned.
 
According to Jill Sinclair, DWF’s head of counter fraud in Scotland, the government’s plan to introduce a tariff system for all whiplash claims with a prognosis of 24 months or less will have important ramifications for the Scottish claims landscape.
 
 
Sinclair said when the reforms are implemented in 2018 through the Prisons and Courts Bill, personal injury claimants in Scotland will receive, on average, seven times more compensation for an injury sustained over four to six months, compared to the same injury in England.
 
“This will no doubt attract claims management companies to Scotland,” Sinclair said. “Of more concern when considering the less scrupulous amongst them, is the fact such companies are unregulated in Scotland, unlike in England.”
 
DWF previously highlighted government figures that showed a 16.6% increase in injury claims over the past four years in Scotland, compared to a 4.5% decrease in England over the same period.

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The legal firm is now calling for a greater collective response to organised fraud in Scotland amid growing concern over a rise in fraudulent injury claims.
 
“The industry needs to collaborate in the fight against fraud. The cost and compensation regime in England and Wales has resulted in a significant migration of fraudsters north of the border,” said Lorraine Carolan, DWF’s national head of counter fraud.
 
Alistair Ross, assistant director at the Association of British Insurers, added: “Scotland does not want to see cash-for-crash criminals operating here exploiting drivers and defrauding insurers which push up the cost of motoring.”
 
 
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