A probe into £2billion worth a year of car insurance claims has been launched by Watchdogs. An alarm about a surge in premiums, which have shot up more than 20% since 2009 has led to the Office of Fair Trading’s investigation A jump in personal injury claims and fraud has been termed as the cause by insurers. After an accident, the OFT’s “market study” is looking at hefty bills from garages and car-hire firms. If, after a crash, one of the drivers accepts blame (or they are proved at fault) their insurer normally pays the other person’s repair bill, and often the cost of a courtesy car while their vehicle is in the garage. However, according to the OFT it’s possible insurers are being hit with over-the-top claims for both.
Reports claim that a significant head injury was suffered by Joseph Malasi after a collision with a taxi in Bedford in September 2007 and he subsequently launched legal action against driver Maqsood Ahmad.
The claim was disputed by Mr Ahmad who said that he was drving within the prescribed limit and Mr Malasi was also to blame as he decided to skip a red light.
Terming that will only be eligible for 20 per cent of the value of this claim, Judge Richard Seymour at the High Court has now ruled that the 23-year-old can seek damages against the driver’s insurers.