Straw slams car insurance companies

by Ella FAIRCHILD on June 27, 2011

Former justice secretary and outspoken figure Jack Straw has made calls for reforms to the motor insurance industry.

Straw says that insurers are getting paid after referring clients’ details to lawyers without any permission.  In a specially-penned article for the respected Times newspaper, Mr Straw describes how the spiralling costs of insurance premiums - which has been caused by referrals made to personal injury lawyers - is a racket.

The man now assuming the post of Labour MP for Blackburn believes that he is acting on concerns of constituents facing rising premiums. Straw is calling for David Cameron’s government to implement recommendations that were made in 2010 by Lord Justice Jackson, a man who said that such referral fees must be banned.

It’s a huge racket, Straw told BBCs’s Today programme,  and the insurance companies are utterly complicit in this. At any one time, Straw explained, they should and could’ve said that this is outrageous. Straw said that senior executives representing two of the country’s biggest insurers had admitted that the racket is by far the industry’s “dirty secret” and that if their organisations didn’t do it, everyone else would instead.

Garages, recovery firms , and even the police have been selling on this information, stressed Straw, who is also angry with the high-pressure tactics that legal firms handling personal injury claims adopt.

{ 1 comment }

Frank Adlam June 29, 2011 at 2:56 pm

On 1st November 1996 in company with David Cain, then a Partner of Deloitte Touche, now a HMG Advisor, we had a meeting wth Mr Mark Bassett, then Head of Policy Unit 1, DH, now Director of Public Policy at BUPA. I gave him 50 documents which I suggested that UK Insurance Companies were either incompetent or committing fraud against the NHS. I have since been branded a ‘vexatiuous’ person but your article vindicates me. Thank you.

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