The restriction of car insurance ‘referral fees’ will force premiums rising up significantly
The head of insurer Admiral has informed that if the Government agrees with a ban on controversial injury ‘referral fees’, motorists will face even higher insurance premiums. After the clampdown was announced, shares in the company came down seven per cent, losing more than £260million off its value.
Ken Clarke as Justice Secretary has announced that a cynical fraud in which insurer’s trade details of accident victims with claims-shark lawyers is the end of ‘referral fees’. The racket has been blamed for the soaring cost of car insurance – the average comprehensive policy is almost £1,000 now and has increased 40 per cent in a year.
Many drivers without insurance have also blamed the rising of price. Henry Englehardt as admiral chief executive said that the Government needed to set a cap for injuries such as whiplash at, £750 and £150 to lawyers. Currently, victims can receive £2,000.
Car insurance will go up if there is banning of ‘referral fees’. Admiral also said that the ban would not thwart its massive expansion plans, which will give almost 3,000 jobs in Wales. “We are not only selling customer data but also we serve our customers through to a personal injury lawyer if they require assistance”, a spokesman said.