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Claims management companies should face strict legislation

Submitted on Wednesday 3rd August 2011

Published on Thursday 4th August 2011

Current status: Closed

Closed: Saturday 4th August 2012

Signatures: 61

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Claims management companies should face strict legislation

Additional Information

Motor insurance has spiraled out of control, pricing many people out due to massively inflated premiums. It's clear that the cost to the industry from claims management companies offering "no win no fee" services are contributing to this as folk with false claims have nothing to lose.
* Legal fees should be capped.
* Personal injury claims must be handled by established solicitors.
* Persons who lodge claims to a court should be made to pay legal fees if they lose. This will make lodging claims a less attractive idea if losing will hit the pocket.
* Compensation payouts should be limited to reflect only actual losses.
* Personal injury liability should be limited to loss of limb or death, thus insurers should not load policies with this as risk. It should be an optional extra with default liability to lie with insured individual.
* Punishment for people convicted of falsely exaggerating claims for gain should involve mandatory prison terms.

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