Smash and grab
It costs the NHS £8m a year to treat whiplash. Yet the cost of related claims to the insurance industry now stands at a prohibitive £2bn. As the former Justice Secretary said so succinctly: “This is not a system; it’s a racket.”
It’s not just the conduct of “no win, no fee” legal firms that need to come under scrutiny after the ex-minister’s constituent, Phil Riley, was tracked down and offered the prospect of more than £3,000 if he made a claim following a minor bump two years previously that resulted in minimal damage and no injury.
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Hide AdThere is also Mr Straw’s allegation that insurance firms, and the police, are selling the details of potential accident victims to claims companies, conduct that is morally reprehensible and also in breach of data protection legislation.
Such a “smash and grab” approach must be given the red light, starting with the immediate outlawing of referral fees.