AXA UK has welcomed the Government’s decision to ban personal injury referral fees but warned that the move may not achieve all that is hope for.The fees, which have been blamed for inflating motor insurance premiums, are the “tip of the iceberg” so far as AXA is concerned, and the insurer is demanding a reduction in the fixed fees paid through the Ministry of Justice process as well, stating:
“AXA calls on Government to additionally commission a robust review of the fixed fees earned by personal injury lawyers for minor injury claims, so as to eliminate the huge profit margins which encourage the compensation culture.”
The group also wants the Government to consider how to contain the growth in whiplash claims and to work with insurers and medical bodies to agree formal criteria for the diagnosis of whiplash.
AXA announced in June that it would no longer accept referral fees from personal injury lawyers when putting customers in contact to pursue valid claims, and Admiral has today confirmed that it has never sold customer details to personal injury lawyers or accident management companies.
However, the insurer estimates that personal injury referral fees account for around 6% of its UK car insurance profit, before tax.
source : http://www.insurancedaily.co.uk
