First the chancellor proposes to go beyond his remit by changing core general legal principles to appease wealthy insurance companies, then fails to ensure that promised cuts in motor insurance premiums actually materialize. Mmmm!
In his autumn statement, chancellor George Osborne pledged to end the right to cash compensation for minor whiplash injuries and raise the upper limit for personal injury claims in the small claims track from £1,000 to £5,000. Over Christmas the Ministry of Justice announced that leading motor insurers had promised to pass on to customers 100% of the savings they make from curbs on whiplash claims – estimated at up to £50 per motor premium. Last week, however, both the government and trade body the Association of British Insurers admitted there will be no industry audit to confirm that insurers keep that promise. This has inevitably led to concerns that there is nothing to stop insurers simply booking the ‘savings’ as extra profit – at a time when the average motor premium is soaring once again.