Car insurance news
Car insurance company piloting clinic for those involved in road accidents
Car insurers Norwich Union have set up their own clinic to treat those involved in road accidents. The clinic is open to Norwich Union policy holders and those claiming against the motor insurance company but not general members of the public.
The clinic specialises in soft tissue injuries such as whiplash injuries and the doctors aim to teach patients how to overcome pain and the fear of pain associated with their injuries by using remedial exercises.
The program is essentially designed to speed up recovery and cut the costs of personal injury claims to Norwich Union. Whiplash injuries make up around 80% of personal injury claims to the car insurance company following road accidents and the quicker that they can encourage their claimants or potential claimants to recover the more Norwich Union’s compensation expenses will be reduced.
The Association of British Insurers states that there has been an increase of 250% when considering the amount awarded to claimants for personal injury claims since 1999. Most of these claims are for whiplash following car accidents and an insurer can end up paying out around £5,000 in compensation and legal fees.
Although this project is only a pilot program the UK's largest motor insurers has seen results already. David Hooker, Norwich Unions head of claims, asserts that the average number of physio-therapy sessions for whiplash injury treatment at the clinic have been reduced from eight to just four.
Although the idea behind the clinic has received some criticism and Jennie Walsh of London personal injury lawyers, Thompsons Solicitors says: ‘Rehabilitation has to be done for the good of the patient and not for the good of the motor insurers.’
This clinic follows suit since car insurance companies world-wide are striving to limit the escalating amount of compensation claims. Motor insurers throughout Europe and the US offer their own vehicle repair services. Other insurers have deals with local garages to ensure reduced rates. Although in-house medical care from Norwich Union is the latest approach.
Since launching the clinic in January 2004 240 patients have been treated. However, Norwich Union is yet to assess whether the program is actually cutting costs. They plan to consider the success of the clinic when they have treated 500 patients and then decide whether to expand the program or rethink their money saving strategies.