The Association of British Insurers (ABI) has welcomed the government’s plan for driverless car insurance and its proposed reforms for the whiplash claims process.
The industry body praised the government for echoing proposals to extend the UK’s compulsory motor insurance to include the use of automated vehicles.
“It’s good to see the government adopting the insurance industry’s proposals to keep motor insurance as straightforward as possible for customers in a world of increasingly automated vehicles,” said Ben Howarth, ABI senior policy adviser on motor and liability.
Howarth said the ABI is expecting to see more details in the Modern Transport Bill. He also assured that insurers will continue to help the government work through various challenges arising from driverless cars.
“Automated vehicles have the potential to revolutionise our transport systems and dramatically improve road safety, but it’s right the insurance system is developed in parallel to give motorists confidence in using them,” Howarth said.
The ABI also expressed support for the government’s proposed whiplash reforms, which include plans to limit compensation for minor soft tissue injuries.
The trade association is also backing proposals to raise the small claims track limit for road traffic accident claims from £1,000 to £5,000.
“These measures are needed so that compensation for minor injuries is not at a level that encourages a compensation culture to thrive,” said Rob Cummings, ABI head of motor and liability.
“Limiting compensation for minor injuries and increasing the small claims limit should balance the interests of those claiming with those of the far greater number of insurance-paying motorists,” Cummings added.
Cummings said the proposed whiplash reforms must be implemented as a package and in full to help reduce pressure on motor premiums.
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