08 January 2013
National law firm shines spotlight on rip-off motor insurers
Following last night’s Channel 4 Dispatches exposé ‘Secrets of Your Car Insurance’ Slater and Gordon submits evidence to Competition Commission Inquiry highlighting a focus on profits over customers.
Evidence submitted yesterday to an independent commission shows the motor insurance industry is responsible for up to £1.3 billion of whiplash claims that would not have been made without encouragement from the insurers themselves. This is just one of many examples dodgy dealing by insurers highlighted in a comprehensive report submitted to the Competition Commission yesterday by leading law firm Slater and Gordon.
The evidence builds upon the shocking examples of profit-driven industry practice exposed in last night’s Channel 4 Dispatches. Last night’s programme highlighted numerous ways in which the industry consistently puts profits over customer service and even safety. The Office of Fair Trading has described the motor insurance industry as ‘dysfunctional’, leading the government department to call on the Competition Commission to investigate.
One such example cited by Slater and Gordon is a case where nearly £140,000 was charged for courtesy car hire, when the owner of a 14-year old Bentley worth £16,000 was given a brand new model for nearly five months.
For years insurers have blamed the rising cost of premiums on whiplash and other ‘fake’ claims. Slater and Gordon represents genuine accident victims, who have been systematically targeted by insurers seeking to place the blame for rising costs on them. Slater and Gordon’s evidence clearly demonstrates insurers are not only responsible for a massive proportion of increased premiums, but they have continually sought to misinform government and the general public about the source of these increases.
Simon Allen of Slater and Gordon, said:
“For too long, accident victims have been scapegoated by insurers seeking to divert the blame for increased premiums elsewhere. Our report, along with the Channel 4 investigation, clearly shows the insurers themselves are the source of these inflated costs in an effort to increase profits.
“The Competition Commission is not due to report until 2014, allowing insurers to continue to manipulate the market for the benefit of their profits not their customers. We call on insurers to do the right thing and voluntarily stop these practices now, rather than waiting until they are forced to.”
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