1. ITV Report

New law to bogus whiplash claims

It's hoped new legislation will stop drivers claiming for bogus whiplash claims Photo:

It's been announced new legislation to stop drivers "milking the system" for whiplash claims will come into force next week.

Last year Bradford was among the worst cities in the UK for the number of bogus claims. According to the Financial Times, in Bradford there were 18 claims per 1,000 people.

According to the Association of British Insurers, last year these fake claims across the UK cost insurers over £2 billion, adding an extra £90 a year to the average annual motor premium of £440.

This also has an impact on insurance prices - based on 4 million quotes, another report found residents in Bradford were the worst hit for car insurance price hikes, when premiums quoted by insurance companies rocketed by 17.1% compared with the national average.

On April 1, new legislation comes into force designed to stop lawyers playing the system when representing clients with whiplash.

It comes after the insurance industry lobbied the Government, saying inflated lawyers' fees are forcing up premiums. So the new law will cap the fees lawyers can claim and legal bills above that cap will have to come from the victims' settlements.

The worry is that victims will not be able to seek compensation for genuine injuries as legal costs will outstrip settlements.