‘Wristlash’ claims drive up cost of insurance

SECURING a hefty insurance payout after an accident was once as easy as saying a simple word: whiplash.

Drivers were able to claim thousands in compensation with minimal proof, driving up costs for insurers which were passed on to consumers. Such was the effect of surging claims on motorists it prompted a government intervention and the introduction of a cap on payouts.

However, insurers say new whiplash-style claims for sprained wrists and bumped knees are once again helping to push insurance premiums to record highs. The average premium for comprehensive motor insurance rose by 25 per cent over the past year, according to the Association of British Insurers (ABI), with some drivers saying their bills had doubled. The average cost of annual cover is close to £1,000, Compare the Market said. Insurers have blamed rising prices on inflation, increased repair costs and a rise in thefts.

Mark Shepherd, head of general insurance at the ABI, said the industry was

‘We’re moving from being the country with the weakest necks to one with the weakest knees’

also contending with a surge in claims that some have dubbed “wristlash”.

He said: “The whiplash reforms should have reduced the pressure these claims were having on motor premiums. However, while we’re seeing fewer whiplash claims, claims for minor injuries – such as bruised knees or sprained ankles – have increased.

“We’re moving from being the country that had the weakest necks in Europe to the weakest knees in Europe.”

One industry insider said insurers were seeing a return of spurious claims, with claims agencies securing four-figure payouts, in some cases 10 times the amount drivers can claim for whiplash injuries. He said: “Now that you can only get in the region of £250 for whiplash set by the tariff, people can claim damages up to £2,400 because they’ve been shunted in a car park and hit their knee on the steering wheel.”

Under the 2021 Whiplash Reforms, whiplash compensation was capped, depending on how long the injury persists.