Stephen Mosley
Main Page: Stephen Mosley (Conservative - City of Chester)Department Debates - View all Stephen Mosley's debates with the Ministry of Justice
(9 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mike Penning
I have not yet had an opportunity to look at the full details of the case the hon. Gentleman refers to, but I know that there is an ongoing investigation to find out how it happened and to ensure that it does not happen again. I can only emphasise, as a human being, that it must have been horrible to hear that being said in the background. We must ensure that it does not happen again. The Secretary of State met the group only last week to discuss the matter.
Stephen Mosley (City of Chester) (Con)
9. What steps his Department has taken to prevent insurance fraud.
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
I can assure my hon. Friend that the Government are committed to tackling insurance fraud. We are banning lawyers from offering inducements in personal injury claims and are legislating to penalise fundamentally dishonest claimants. We are also consulting on a requirement for lawyers to undertake previous claims checks on whiplash claimants, which will combat fraud at source.
Stephen Mosley
It is estimated that insurance fraud and exaggerated claims cost some £2.1 billion last year, with motor insurance alone costing about £811 million. Ultimately, it is not the insurance companies that pay out, but the consumers, who pay for it through higher insurance bills. What further measures is my hon. Friend taking to tackle the compensation culture in this country?
Mr Vara
The compensation culture to which my hon. Friend refers means that honest drivers are having to pay higher premiums because of abuses, especially in whiplash claims. That is why the Government have put in place measures to deter unnecessary speculative and exaggerated claims, while ensuring that genuine claimants can come forward and have proper redress. In the first phase of our measures, which will start next month, there will be fixed costs of £180 for medical reports, which in the past had been as high as £700.