Vehicles: Insurance

Lord Foulkes of Cumnock Excerpts

Wednesday 4th July 2012 Lords Chamber

[Earl Attlee]

My noble friend makes an extremely important point. On 2 May, my right honourable friend the Secretary of State for Transport hosted a cross-government insurance summit with the insurance industry to take stock of the action taken since the Prime Minister’s summit in February to reduce the cost of motor insurance. We are working closely with the industry to outline further measures being taken to reduce premiums.

[Lord Foulkes of Cumnock]

Will the Minister explain why, while the number of motor accidents has gone down, the number of personal insurance claims has gone up? That means that the cost of insurance has risen substantially. Did the summit that he has just referred to discuss this, what conclusions did it come to and what action has been taken as a result of its conclusions?

[Earl Attlee]

My Lords, we are working with the insurance industry to reduce the level of fraud. We are aware, for instance, that at 76%, the UK has twice the average percentage of whiplash claims as a proportion of personal injury claims. So we are well aware of the problem and we are working on it.

--- Later in debate ---

[Earl Attlee]

My Lords, I suggested very good reasons as to why it would not work.

[Lord Foulkes of Cumnock]

It does work.

[Earl Attlee]

We also have a much better system, which is continuous enforcement, and we will clamp down on those motorists who do not insure their vehicles.