Crack down on whiplash scourge, begs Aviva chief

ONE of Britain’s biggest insurers has urged the Government to press ahead with a crackdown on fraudulent injury claims.

Aviva bosses said Britain’s vote to leave the European Union should not be allowed to delay a new law ending cash payments for minor whiplash injuries.

The legislation – which could save insurers £1bn a year – was promised in last year’s Autumn Statement but there has been little progress since.

It would curb compensation for easily faked problems as well as limiting the amount of money solicitors could cream off.

Andy Briggs, chief executive of Aviva UK Life and chairman of the Association of British Insurers, said tougher laws would drive down premiums. The business has pledged to pass on any fall in costs to customers, saying motorists would pay an average of £50 a year less.

Briggs said whiplash claims were 19 times higher in the UK than France, which is less indulgent of the compensation culture.

‘Either people in the UK have necks 19 times weaker than people in France or there’s some other factor. We’re very keen to make sure this legislation still happens, with everything else that’s going on,’ he said.

He was speaking as the firm unveiled a 13pc rise in operating profits to £1.3bn for the first half of 2016. Aviva also hiked its dividend by 10pc to 7.42p per share.

This growth was driven by a 20pc rise in life insurance profits after the £5.6bn takeover of rival Friends Life last year.

General insurance profits were down 17pc due to a £23m charge for the Government’s new Flood Re levy to support insurance for flood-hit homes, and higher natural catastrophe claims in Canada and France.

Fellow insurance giant RSA announced a similar boost, with first-half operating profits up 20pc to £312m. The dividend was raised by 43pc to 5p per share.

Chief executive Stephen Hester said he hoped to pay out 40pc to 50pc of profits as dividends.

He said the rise in car insurance was partly due to injury claims, but warned prices might continue up because the fall in the pound had made it more costly to import car parts for repairs.