Residents in some districts are hit by astronomic increases on car insurace premiums
- Bradford worst hit in UK for increases in car insurance premiums - Bradford MP says enough is enough
- Labour has been calling time and time again for action on this including banning referral fees
- Shadow Justice Secretary's calls for whiplash claims to be made more difficult given backing by transport select committee
Labour is welcoming a Transport Select Committee report which exposes the scandal of dodgy whiplash claims driving up the costs of motor insurance premiums. Parts of West Yorkshire, most notably Bradford, have seen the steepest rises in the cost of insurance in the country.
Labour MPs, most notably former Justice Secretary Jack Straw, have been leading the campaign on this but the Tory-Lib Dem government has so far refused to act. Jack Straw wrote an article for the Times in June 2011 in which he called for reform to the car insurance industry, backing the recommendations made by Lord Justice Jackson back in 2010.
Responding to the recent report Fabian Hamilton said,
"The rise in the cost of car insurance in post code areas considered to be at high risk is encouraging some drivers to drive illegally. There are many bogus claims for some injuries and a growing culture of seeking compensation that is fanned by the insurance industry itself as it can increase turnover. Action on these matters is urgently needed."
John Woodcock MP, Labour's Shadow Transport Minister, responding to today's Transport Select Committee's report into the rising cost of motor insurance, said:
"This important report rightly exposes the scandal of dodgy whiplash claims hiking up insurance costs for honest motorists.
"This out-of-touch Government has so far rejected Labour proposals to limit whiplash claims - they should now swallow their pride and act to ease eye-watering insurance costs for hard-pressed motorists."
Labour put forward suggestions for dealing with this issue in the Legal Aid Bill:
Labour tabled amendments to the Legal Aid Bill that would have dealt with the compensation culture by limiting whiplash claims to high-speed collisions, criminalised referral fees and spam text messages from Claims Farmers. The Government rejected these amendments and are instead pressing on with their dangerous cuts which have nothing to do with fixing the compensation culture as they claim and everything to do with stopping people enforcing legitimate civil claims where they've been wronged, for example, a grandmother ripped off on her pension by a dodgy investment advisor.
The Government need to follow Jack Straw's and Sadiq Khan's lead and act to ban ambulance-chasing claims farmers and lawyers.