FOIL attacks whiplash report

The Forum of Insurance Lawyers (FOIL) has attacked a survey of 4,000 people by claimant lawyers’ organisation APIL, which found that 40 per cent of whiplash victims did not claim compensation.

The report, launched at a reception in parliament yesterday, also revealed that insurers were responsible for generating more claims than lawyers, 28.5 per cent compared to 21 per cent.

A row has now developed over how the figures in the report, with Laurence Besemer, chief executive of FOIL, saying he had “several concerns” about the data.

“For example, only 40 of the 4000 surveyed had actually suffered a whiplash injury, which is far too small a sample to create statistical confidence in applying the conclusions to the general population.

“We are also intrigued as to the source of data suggesting a fall in whiplash claims, given the latest Compensation Recovery Unit statistics show that motor claims in total have increased from 790,999 to 828,489.”

However, Besemer agreed with APIL’s recommendation that claimants should be subject to a written statement of truth, explained to them by their solicitors.

APIL suggested that breaches of the statement could amount to fraud and open the claimant to prosecution.

The report also called for “free and prompt exchange of information” between the RTA claims portal and the Insurance Fraud Bureau (IFB) to facilitate identification of fraudulent behaviour.

Besemer said FOIL had already recommended that the cost of fraud detection should be shared with claimant representatives via a subscription to the cost of building and maintaining the databases held by the IFB.

“That the current system is dysfunctional and in urgent need of reform is beyond doubt and we do not recognise any justification for the current system and level of claims,” he said.

An APIL spokesman responded by saying that Besemer had misunderstood the figures in the report.

He said that 51 out of 4,000 people had suffered a whiplash injury in the past year but a total of 522 had suffered an injury at some point in their lives.

Of the 522, only 321 had actually claimed for the injury. The spokesman added that 70 per cent of people in the survey said they would not pursue a claim without an independent solicitor.