Oral Answers to Questions

Debate between Andrew Jones and Shailesh Vara

Tuesday 17th December 2013 Commons Chamber

[Andrew Jones (Harrogate and Knaresborough) (Con)]

17. What steps he is taking to tackle rogue payment protection insurance claim companies and nuisance calling by those companies.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

Our priority is to protect the public by rooting out and punishing bad practices by claims companies. The claims management regulator is expanding its resources and consulting on a new set of toughened rules to crackdown on abuses, and later next year claims companies will face fines for rule breaches.

[Andrew Jones]

I thank the Minister for that reply. Given that so many rogue companies have been plaguing constituents, what effect have the Government’s actions had on the number of claims firms?

[Mr Vara]

I am happy to say that there has been a positive impact on the numbers. Between January and November 2013, the total number of authorised claims management companies decreased by 718; the total number of personal injury claims management companies fell by 917; and the total number of PPI claims management companies fell by 85. That is clear evidence that the Government’s tough measures are having an impact.

Oral Answers to Questions

Debate between Andrew Jones and Shailesh Vara

Tuesday 12th November 2013 Commons Chamber

[Margot James (Stourbridge) (Con)]

8. What steps he has taken to reduce motor insurance fraud to help motorists with the costs of driving.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

On 23 October the Government announced a package of reforms to ensure the availability of good-quality medical evidence in whiplash cases. Our reforms will create a robust system that deters speculative and fraudulent claims. They will lead to reduced costs for insurers and lower premiums for honest motorists.

[Andrew Jones]

I thank the Minister for that reply. How will he ensure that the medical panels are independent and will help to stop bogus claims?

[Mr Vara]

I can assure my hon. Friend that our reforms will see experts commissioned jointly by both the claimant and the defendant and paid regardless of the outcome of the claim. The measures will help ensure independence, and the new examination and reporting scheme will result in fewer speculative and fraudulent claims.