Are Insurance Companies To Blame? 0

Insurance premiums have been increasing over recent years, with recent occurrences alarming to many. For this reason The House of Commons Transport Committee is to re-open up an investigation into this issue. Jack Straw (Labour’s MP for Blackburn) has been called as a witness as it is also something that he feels strongly about. His concerns stem from his personal research and he wants to change how insurance companies operate in a certain ways.

It is his belief that the prices have increased because of details of clients being passed to compensation claim companies from actual insurance companies. According to Jack Straw, the details could be sold for as much as £1000 for every potential client.  It has also been suggested that this is the reason why England has the highest percentage of whiplash claims in Europe. Once an accident has occurred, claims companies will bombard drivers with calls after they receive their details. They will attempt to persuade them to peruse a claim with their company. Jack Straw has also suggested that “No win no fee” claims are challenged in the way that they operate as well as the way whiplash claims are handled.

The head of The House of Commons Transport Committee, Louise Ellman has released a statement showing sympathy for motorists and how Jack Straw being on board will help the cause. “Motorists continue to suffer as premiums increase and there is mounting evidence that the insurance industry itself is part of the problem. Jack Straw’s research is a powerful contribution to the debate and as well as hearing what he has to say I will want to hold the insurance industry and the Government to account”.

Insurance is in some cases are pricing drivers off the road, especially young drivers. With the cost of petrol going up too, this investigation would certainly be welcome by all drivers in the UK. Drivers who may not have claimed from accidents before, whose insurance would naturally go down have in some cases gone up.  It would seem that innocent drivers are being punished without justification.

No official date for the meeting has been announced but it has been anticipated for some time in autumn. The date may have been set to give the committee time to call upon further witnesses other than Jack Straw. The outcome could change the way insurance companies manage certain operations and lower insurance premiums.

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