Whiplash crackdown will save drivers £1bn

Justice secretary David Gauke has announced reforms to tackle fraudulent whiplash claims following pressure from insurers to crackdown on “crash for cash” scams. Under the Civil Liability Bill, compensation payouts for whiplash injuries will be capped and medical evidence will have to be produced for claims to even be considered. The Government said the move would slash £1bn off insurance premiums, taking £35 off the £493 average policy. The Government also confirmed that it would change the Ogden rate, or personal injury discount rate, which is used to calculate the size of damages claims for people who are seriously injured in accidents.