Insurers say UK is whiplash capital of world

The UK’s civil litigation system and wider compensation culture had led to a steep rise in road accident whiplash injury claims in recent years, the Association of British Insurers (ABI) has told the House of Commons Transport Committee.

The motor insurance industry paid out £10.7bn in claims in 2011, of which whiplash claims cost approximately £2.2bn, said the ABI in written evidence.

It said that while there were a number of factors that affected the price of a premium, the cost of claims was highly indicative of the overall level of premium that an average motorist can expect to pay.

It added that the average paid premium in 2011 was £440. With whiplash claims representing 20 per cent of overall claims expenditure, this represents approximately £90 of the average premium.