Saga response on banning referral feesThursday 8 September 2011
SAGA RESPONSE TO GOVERNMENT ANNOUNCEMENT ON BANNING REFERRAL FEES AS PART OF REFORM OF THE PERSONAL INJURY CLAIM PROCESS
Saga welcomes the Government announcement about tackling the claims culture. However, Saga also believes that banning "referral fees" in isolation is unlikely to significantly reduce motor insurance premiums and that the ban needs to be part of a wider package of measures.
The relentless advertising on day-time TV and questionable marketing practices of claims management firms has created a culture where people 'have a go' and try their luck making compensation claims. Of course, those who want to make a claim should still have access to legal advice.
The problem is illustrated by the fact that the number of accidents on Britain’s roads is falling sharply yet the number of whiplash claims is increasing. Britain has the safest roads, per capita, in Europe, yet there are twice as many personal injury claims than in any other EU country. From this we conclude that the majority of motor insurance whiplash claims are highly questionable.
The key to reducing premiums is to reduce the number of questionable claims being made - and these claims are primarily driven by advertising and marketing by personal injury lawyers. We believe that such advertising and promotion by personal injury lawyers should be severely restricted.
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