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Overhaul in assessing whiplash claims set to put the brake on the fraud of choice

The development of a new body which will run an IT system that will randomly allocate medical experts for soft tissue injury claims and have responsibility for ensuring accredited medical experts should reduce fraudulent whiplash the Association of British Insurers (ABI) said today. Every week there are over 9,500 whiplash claims, costing insurers £2 billion a year. The lack of any objective medical test has over recent years led to whiplash being the seen as the fraud of choice.

Speaking at the Motor Accident Solicitors Society Conference in Manchester today, James Dalton, ABI’s Head of Motor Insurance, will say:

"Developing an IT system that randomly allocates independent and accredited medical experts to claimant lawyers is critically important in working towards the delivery of fundamental reform of the medico-legal reporting system. That is why the insurance industry has committed to fund the development of the MedCo system and we continue to work with key stakeholders through the Ministry of Justice to determine the key policy issues. Significant progress has been made so far: there is agreement on the structure of the Board including the independence of the Chair, broad agreement on the Articles of Association underpinning the company and the MedCo website will be operational this month.

"We look forward to working with claimant lawyers, medical experts and the compensator community over the coming months to turn MedCo into a reality".

Last updated 01/07/2016