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Transport Committee Report Cost of Motor Insurance

11 March 2011

Fraud is one of the main factors driving up the cost of motor insurance, says the cross party transport committee at the House of Commons. Wider access to justice should not provide a licence to make false personal injury claims under car insurance policies. A dedicated police unit - paid for by the insurance industry - should be established to tackle this escalating problem.

The report 'The cost of motor insurance' (Fourth Report of Session 2010-11) also recommends that The Government should:

  • Set out a clear timetable for new data sharing arrangements between DVLA and motor insurers.
  • Undertake a promotional campaign, aimed at young drivers, to alert them to Continuous Insurance Enforcement (CIE - the requirement for the keeper of any registered vehicle to have valid motor insurance).
  • Review the penalties for uninsured driving one year after CIE has been implemented.
  • Fund research to review international experience in restraining the number of personal injury claims relating to motor insurance, with the aim of publishing a discussion paper during 2012 outlining possible options for change.

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