Car InsuranceReferral fees banned
Referral Fees banned by AXA with immediate effect
AXA has become the first insurance company to voluntarily ban referral fees from personal injury lawyers whilst also calling for whiplash injury reform in a bid to reduce fraud within the insurance industry.
AXA estimates that around half of the recent rise in car insurance premiums is related to the increase in bodily injury claims, with the 'compensation culture' playing a major role in this.
The company noted that a number of other countries have banned whiplash claims completely or below a certain speed threshold, and maintains that what is ultimately needed is a complete review of whiplash and other minor 'trauma' claims to eliminate fraud.
Paul Evans, Group CEO, AXA UK, said 'It is unfair and unsustainable that drivers are being disadvantaged by exaggerated injury claims which drive up the cost of insurance.'
'Referral fees have only served to promote an even greater number of injury claims and AXA will stop this practice whilst Government implements the necessary legislation to restore order'
For the full press release, please visit http://www.axa.co.uk/media-centre/media-releases/news-story?id=20110628_0800