What One Hand Giveth The Other Taketh Away
Having announced his intention to “crack down” on the alleged compensation culture in whiplash claims before delivering his Autumn Statement the Chancellor, somewhat ironically, increased Insurance Premium Tax (IPT) from 10% to 12% thus increasing, at a stroke, the cost of home and motor insurance premiums and exposing the hypocrisy at the heart of the supposed PI Reforms.
In all the arguments put forward by the Government to reform whiplash claims the main one is allegedly to reduce the cost of motor insurance. However since the personal injury reforms first began in 2013 IPT has risen from 6% to 12%, a 100% increase in three years. Whatever reduction in insurance premiums may have been likely have now almost certainly been cancelled out by the doubling of IPT.
Whilst not wanting to appear cynical it would seem that any further reforms, rather than reducing the cost of motor insurance, would simply give the government the opportunity to increase IPT.
If you have been injured in a road traffic accident, whether as a passenger, a pedestrian or a cyclist you may be entitled to compensation. For further information, on a “no obligation” basis, please telephone us on 0800 731 8539 or e-mail us using the link at the top of the page.
This article was produced on the 13th January 2017 by our Personal Injury & Group Actions team for information purposes only and should not be construed or relied upon as specific legal advice.