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Ban on cold-calling claims spruikers gains support

Most UK drivers would support a ban on claims management companies cold-calling people to represent them in motor vehicle claims, according to a new Association of British Insurers (ABI) survey.

Support for the ban came from 78% of respondents after they were shown figures demonstrating the “epidemic” in whiplash claims in the UK following motor accidents.

Nearly 50% of people aged 18 to 24 also supported the ban.

The next most popular remedy, which 61% of respondents support, is to use external evidence such as vehicle size and speed to help determine whether whiplash has occurred.

Most respondents also support capping compensation for whiplash injuries and scrapping compensation for minor whiplash incidents.

With fraud estimated to add £50 ($76) to UK insurance premiums annually, 48% of respondents think the insurance fraud register to be introduced this year will act as a deterrent while 29% disagree and 23% do not know.

With complexity an issue in insurance products, 36% of people say they would buy basic cover that is simple to find, has simple terms and conditions and is approved by an impartial body but is not necessarily the cheapest.