Govt to Tackle Rising Insurance Costs

22.02.12

In a meeting with the insurance industry and business and consumer groups, Prime Minister David Cameron discussed the subject of rising premiums and what the government is doing to help reduce the costs. He pledged to take action against the compensation culture, reduce health and safety red tape and cut legal costs; while the insurance industry vowed to pass savings on to consumers.

Consumers, motorists, families and business are facing excessive insurance premiums. To make progress on pledges to reduce these issues, the industry has agreed to pass savings onto policyholders as a result of a government commitment to cut the current £1,200 lawyer fee for small value personal injury claims. The industry also said it will adjust premiums to reflect cuts in legal costs created through the Jackson reforms of the “no win, no fee” practice and referral fee ban. Additionally, the road traffic accident claims process will be extended to cover employer and public liability.

Source: Car Rentals