MOBILE DOCTORS GROUP PLC 
By According to the latest figures released by the Association of British Insurers (ABI), legal fees in personal injury and whiplash claims are costing UK motorists up to £2.4 million a day in extra insurance premium costs.
This means that a staggering £876 million a year is paid out in legal costs, while £1,666 is being added to car insurance premiums in the UK every minute. Sources at the ABI, commenting on the findings, said that the figures were "exorbitant" and insisted that steps for bringing down the costs should be taken urgently.
At present an average car insurance policy costs £418, which is an 18% increase on an annual basis, with the biggest part of the rise attributed to a surge in legal costs. James Dalton, the ABI's head of motor and liability insurance, claims that, paradoxically, legal costs are sometimes bigger than the compensation awarded, which is a clear indicator that the UK compensation system is "disproportionate". As an example, he points out a recent high-profile case where compensation of £15,000 was awarded, while the legal costs bill amounted to £37,250.
David Edwards, Senior Partner at Edwards Hoyle Accident Compensation Claim Solicitors firm defends the legal corner:
" It always amuses me to hear the ABI whinge about legal fees when the extent of the legal fees incurred is down to how they handle claims. The maximum legal fee a solicitor can receive for handling a Road Traffic personal injury claim is now £1350 so why in certain cases are legal fees so much more ? The answer is that insurers choose to argue ridiculous points and contest even the most straightforward of cases. Put it this way, insurers pay nothing if they win cases so they need to start asking themselves serious questions over their ability to make correct decisions. A little bit more time spent on recruiting and training staff and less on self publicity would be a start".
The figures were announced shortly after Prime Minister David Cameron pledged to put an end to the whiplash culture in the UK. The ABI is planning a conference to discuss possible moves to reduce car insurance premiums.
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