Personal injury and discount reforms must be “urgently” be pushed through, the ABI has warned.
A year on from the controversial discount rate cut from 2.5% to -0.75%, the Association of British Insurers (ABI) is urging the government to push through personal injury reforms.
James Dalton, director of general insurance policy at the ABI, said: “It is time to end the uncertainty. One year on from the Government launching a review into what is widely accepted to be a broken system, motorists, claimants and insurers all need to know where they stand. The Government must urgently bring forward relief for motorists by introducing a framework for reform to create a fairer compensation system for claimants, insurance customers and all taxpayers.”
The government promised a review of the current compensation system a year ago, but since then there has been a lack of clarity about how and when reforms will be put in place.
It is possible that they could go through as part of the Civil Liability Bill in Spring 2019, but this has not been confirmed.
Costs to motorists rise
Annual lifetime insurance costs are new estimated to be £31,650, according to the ABI. This is more than the price of the average new car, or an average UK salary.
The ABI’s Motor Premium Tracker shows that the average annual comprehensive motor insurance policy price shot up 9% in 2017, to a record high of £481.
Delays to discount rate reform are putting a heavy burden on the driving public, the ABI has warned.