insurance of london

insurance of london
The number of personal injury claims has been going up steadily and so to the number of payouts, this in turn is leading to a rise in insurance premiums as the number people claiming compensation after being involved in an accident is rising. These are the findings of a new report which claims that personal injury claims will push the cost of insurance up by 28 per cent over the next five years.

The report comes from market analyst Datamonitor, which predicts that between now and 2015, the amount insurers pay in claims to rise by £ 2.4 billion, estimate that in 2015 £ 10.9 billion will be paid out by insurers over accident claims .

The research also shows that the payment as a result of claims have continued to rise and show no signs of abating. The average payout to someone injured in a road accident has risen from £ 4277 £ 5331st This reflects rising medical and legal costs. It also reflects the high inflation rates in relation to these two factors.

Motor insurance is the most as a result and the future does not look rosey in terms of low premiums. Car insurance premiums rise steeply in recent years at an interest rate of 5.9%, which is almost three times the inflation rate, measured by the index of consumer prices. Higher medical bills and ongoing care insurance costs are huge amounts in compensation and this will be reflected in the premiums they charge.

This is not the only reason. With the increasing development of technology to combat traffic accidents, new safety features in cars more expensive to repair and replace. Larger crumple zones and airbags in the cost of repairing the vehicle and those costs must be made to the driver.

This would not be considered sufficient reason for the Association of British Insurers on the other hand. The organization has long been lobbying for change to sort the way claims are processed and the exact problem of rising premiums. For small claims under £ 25,000, it was suggested that a straight streamline claims handling means fewer lawyers will need to reduce the costs for administering the claim.

The ABI has an extremely important point. Their criticism of the legal costs system is very important, such as legal costs have increased significantly over the years. Currently, the average claim takes just under a year to open with some cases for up to two years. Two years of the representation will cost a lot of money, which ultimately the insurers pay in the end.

Saurav is an author of several articles Pertaining to No Win No Fee, Compensation Claims, Accident Claims, Personal Injury Claims and other legal articles.