Road Traffic Accident Claims Rise Despite Fall in Accidents

Insurance analysts report that the number of people making road traffic accidents claims has significantly increased this year. Despite of fall in the number of traffic accidents more people are making personal injury claims today.

The great increase of personal injury claims (by over 18%) may cost the insurance industry additional 400 million pounds a year.

To regulate this situation, the government of the UK is planning to pass a new law that will limit the amount of money lawyers can make from 'no win no fee' cases. According to the new law, companies winning the claim process would no longer be paid by the defendants, but instead would get the share of compensated damages.
The great fall of motor accidents is the direct consequence of high petrol prices. Trying to save money on petrol, many people are making fewer trips on their vehicles now, and that had significantly decreased the number of accidents in the last year.

Insurance specialists said that a greater percent of people involved in road traffic accidents are making whiplash injury claims.

Clive Coleman, legal BBC corresponded is sure that the increased number of personal injury claims may result in higher insurance premiums, because insurance companies need more money to cover their expenses.