Insurers have welcomed the passing of the Civil Liability Bill through the House of Lords yesterday (20 November).
The Bill, which looks to reform high whiplash costs, will go through no further amendments and could be granted Royal Assent within a matter of days ahead of legislation which is expected in 2020.
This will also address how the discount rate, otherwise known as the Ogden rate, should be set following the shock rate cuts from 2.5% to -0.75% in 2017. If it becomes law however the rate could reset at between 0-1%, experts have predicted.
Martin Milliner, claims director at LV, said it was great to finally see the Bill get “rubber-stamped” in Parliament.
“This signals a real boost to household incomes at a time of uncertainty in the country,” he said.
“Personal injury lawyers will say that the proposed legislation is unfair to customers but the reality is that it couldn’t be further from the truth.
“This legislation has been designed to help provide clarity for customers and they should be pleased that action is being taken to help reduce insurance bills.”
Aviva has pledged to pass 100% of the benefit from these reforms to its customers.
“The advance of the Civil Liability Bill through Parliament is a victory for consumers,” said Rob Townend, managing director of Aviva’s UK general insurance business.
“The Bill, which has now cleared its final legislative hurdle before being signed into law, is fantastic news and represents a fairer system which balances care and compensation for genuine injuries while removing excess costs. The result will help to make motor insurance more affordable for us all.”
Townend added that the reforms would not only just cut the cost of motor insurance, but should also bring an “end to the era of crash for cash, injury-related nuisance calls and the ‘have a go’ mentality behind opportunistic minor injury claims”.
Lord Hunt of Wirral, chairman of the British Insurance Brokers’ Association (Biba) and partner in legal firm DAC Beachcroft welcomed the passing of the Bill, however, urged the government to avoid any additional delay in signing it into law.
During the debate in the House of Lords, Lord Hunt said: “I trust that my noble friend the Minister will understand when I stress again how imperative it is that we proceed to Royal Assent without any further delay.”
He also highlighted that it was vital that the industry passed on the savings to customers.
“For insurers to be able to pass on the savings, there must first be savings,” he continued, noting that this was the primary purpose of this Bill.
The Lord added: “Only if the Bill is implemented, as it is now with a tariff of low damages for whiplash claims up to two years in duration and the other measures planned alongside this, including raising the small claims limit to £5,000, will there be any prospect at all of savings being realised and passed on to consumers.
“That will be in the best interests of all consumers and all citizens.”
Motorclaimguru thinks,what a load of bollocks , this insurers depriving consumer s of their lawful entitlement.
this article is care of https://www.insuranceage.co.uk
This article can be found here.