At last an insurer has come up with a solid plan to clean up the UK car insurance business of all the parasites who feed off it and thereby put up our insurance premiums.

Aviva has calculate that UK motorists could benefit from a £1.4 billion cut in their motor insurance costs, saving £50 on the average annual premium, if devious motor claims practices were tackled.

Aviva’s report, ‘Road to Reform: Tackling the UK’s Compensation Culture’ calls for three amin reforms that will cut costs and improve services for Britain’s insured drivers:

1: Compensate minor, short-term personal injuries in road ‘accidents’ with rehabilitation only. Insurers would arrange and pay for the customer’s rehabilitation, regardless of whether the customer is at fault or not. Cutting cash compensation for minor whiplash injuries could save an estimated £900m from the current annual £2 billion cost of whiplash claims in the UK

2: Restrict personal injury lawyers to cases where their expertise is needed. Raising the threshold at which legal costs can be recovered by a lawyer could save £300m in straight-forward cases for minor injuries where lawyers are not necessary

3: Ban referral fees. A further £200m can be saved annually by banning referral fees for vehicle recovery, car repairs and car hire (the notorious ‘credit hire’ racket where the cost of the courtesy car often far exceeds the cost of the repair).

via Aviva’s Plan to Clean Up the UK Car Insurance Business | Motoring News | Honest John.