Aviva - chief exec Mark Wilson comments on CMA report: "failed to grasp the key issues affecting UK motorists"

Written by Mark Wilson, group chief executive of Aviva and published in Saturday's Telegraph:

The Competition and Markets Authority (CMA) failed to deliver badly needed reforms to the motor insurance market this week following a two year investigation.

The remedial actions contained in their final report amount to very little in meaningful change.

The CMA missed the chance to tackle the fundamental issues affecting UK motorists and the market – with its millions of pounds of unnecessary costs – rolls forward.

Sadly, the CMA investigation had a flat tyre before it hit the road.

The review failed to grasp the key issues affecting UK motorists.

If we look at the major challenges facing the market – whiplash claims, fraud and escalating legal costs, to name a few – the scope of the investigation was inadequate.
This led them to ineffective remedies, some of which they discovered they did not have the authority to implement; inevitably the UK's motorists were left feeling underwhelmed.

I believe the CMA should have been able to review the motor claims process as a whole, a system of spiralling costs which prioritises financial compensation and encourages exaggerated and opportunistic personal injury claims.

Let's call this culture of exaggerated claims what it is. This is fraud. It is not a victimless crime. The cost of motor insurance for law-abiding motorists is driven up as a result.

The Government has shown some appetite for starting to deal with the problems of fraud, whiplash and rogue claims management companies and that's to be commended.
Motor insurance premiums have fallen sharply - down 14 per cent since 2012 – a welcome relief when household budgets have been under so much pressure. But we must stop nibbling at the edges and start taking real bites out of the challenges facing the motor insurance market.

Aviva has put forward wide ranging yet clear and achievable reforms to cut annual premiums by a further £50, equivalent to another 14pc on average for every driver. We want to see a legal system and laws which lead to long-lasting and meaningful reductions in the price of motor insurance.

The CMA failed to address referral fees in car hire and repair claims.

Aviva believes all forms of referral fees should be banned.

These are commonly paid in exchange for details about accidents so that the car hire firm, garage or recovery agent can attract work associated with the claim.
They add a significant level of cost into motor claims, but from a customer's point of view, they add nothing.

Third parties such as some claims management companies see motor claims as an opportunity to profit at the customer's expense. They line the pockets of companies who profit from motor claims, adding around £200 million, or £7 per policy, to the cost of motor insurance, with no tangible benefit to the customer. This is not equitable for consumers and it must change.

Secondly, we need to put the brakes on the UKs compensation culture. Weak regulation of motor claims and poor industry practice has encouraged high claims costs and fraud – much of it from organised crime. The bottom line is increased costs to consumers. Collectively, insurers, personal injury lawyers, claims management companies, the regulator and Government must sort this out.

Last year 94pc of all personal injury motor claims paid by Aviva in the UK were for minor injuries such as short-term whiplash. Compare this to France where whiplash accounts for only 3% of motor injury claims in France.
The UK does not have the weakest necks in Europe. But it does have weak laws and regulations governing personal injury claims and rogue claims management companies.

Aviva recommends reforming the current system which pays cash compensation for minor whiplash injuries, to one that purely focuses on treating victims' injuries and helps them return to health. Whiplash is a genuine injury which can cause significant pain and discomfort. So we want to put care, not cash, at the heart of the injury claims process.

Treating short term minor whiplash injuries with rehabilitation and care instead of cash would remove £900m from claims costs, saving motorists around £32 on the average annual premium.

Finally, if we are serious about tackling this issue, we must look at the legal system which allows exaggerated claims to flourish.

For every £1 Aviva pays out in personal injury compensation in the UK, another 77p in legal fees goes to lawyers. Many claims are straight-forward cases for minor injuries where lawyers are not necessary - restricting them to cases where their expertise is needed could save £300m, or £11 per policy.

Aviva will continue to make the case for change. We are building cross industry consensus. Customers, brokers and insurers want to see the cost of motor insurance reduced.

The CMA had an opportunity to fix the system and it didn't. The responsibility now passes to insurers and the Government.
We cannot afford to waste more time talking about the problems instead of tackling them. Now is the time to overhaul the system to put motorists' interests first.

Toyota - collaborating with Panasonic to allow car owners to control their home appliances from their car

We've all had those "oh-no" moments after leaving home: the washing machine not switched on, the TV not set to record tonight's movie, the air conditioning not primed to cool the house down ready for your return.

Toyota and Panasonic are working together on a new cloud-based telematics service that will make life easier and less stressful by letting people keep tabs on and operate their home appliances from the wheel of their car.

The technology is being presented by Toyota at the Smart Community Japan 2014 exhibition in Tokyo this month, prior to the new service being launched on the market as soon as the second half of this year.

The concept is all part of Toyota's on-going work to make mobility smarter, more convenient and more comfortable, and to increase the value cars can add to people's lives.

It makes use of the existing cloud-based Toyota Smart Center, which already links people, cars and homes around the world, and the Panasonic home appliance control application.

The Panasonic Corporation is a pioneer in smart home appliances, such as televisions, video equipment and air conditioners, supporting its mission for A Better Life, A Better World for all its customers.
The company is working to create new smart homes that are environmentally efficient and network-connected to support modern lifestyles.

The two companies agreed a year ago to co-develop services for next-generation telematics services that link cars to home appliances.

Since then they have succeeded in developing an interface to link their respective cloud services, and laid the groundwork for new services, including applications for in-car operation and status-checking of home appliances.
For example, an application linked to a vehicle's GPS data can remind the user to turn off the air conditioning before leaving home, and enable them to turn it on remotely before returning.

In the future, Toyota and Panasonic will bring their individual strengths to joint development of smarter mobility, using cloud-based services to link people, cars, homes and communities.

Motorists face a £10,000 maximum fine for speeding on the motorway

The Government is planning to empower magistrates to impose fines that are set to rise dramatically, potentially quadrupling the maximum fine for speeding on England and Wales motorways to £10,000.

Under the planned reforms, maximum fines for speeding on dual carriageways and for using a mobile phone while driving will also quadruple, going from £1,000 to £4,000. Driving without insurance could also see increases.

Any new legislation would first have to be debated in Parliament but there is no current timetable for any such discussion.

The planned punishments were immediately condemned as "disproportionate and draconian" by Rupert Lipton, the director of the National Motorists Action Group.

He claimed that fear of being hit with the maximum fine would stop innocent drivers from challenging unfair speeding tickets.

"If you wish to challenge you can currently face six points and a £1,000 fine on non-motorway roads or £2,500 on the motorway. Raising it four-fold is clearly an over-reaction.

"The threat and the fear of a disproportionate fine would deter many from trying to seek justice."

Mr Lipton was backed by Edmund King, the president of the Automobile Association, who said: "We would not condone excessive speeding in any way, but fines have to be proportionate. One has to question whether increasing the fines four-fold is proportionate. It probably is not.

"If we had more cops in cars on the motorway that would be a much more effective deterrent."

RAC Foundation director Professor Stephen Glaister also questioned the proposals.Mr Glaister said: "People who break the law should bear the consequences but this seems such a wholesale change to the system so you have to ask what was going so badly wrong before.

"Ironically we know that speeding offences have declined over recent years and just last week the Department for Transport confirmed that, even after taking congestion out of the equation, recorded traffic speeds have been dropping for a decade on all types of roads."

The Ministry of Justice said custody would "continue to be used for serious offenders and fines will not become an alternative for those who would otherwise be sent to custody".

But Jeremy Wright, the justice minister, said: "Financial penalties can be an effective way of punishing criminals and deterring them from further offending.

"Magistrates are the cornerstone of our justice system and these changes will provide them with greater powers to deal with the day-to-day offences that impact their local communities."

The proposed changes would see:

.  The Level 1 fine maximum increase from £200 to £800. Offences which may be dealt with by a Level 1 fine include unauthorised cycle racing on public ways

.  Level 2 increases from £500 to £2,000. Offences include driving a motor cycle without a protective helmet

.  Level 3 increases from £1,000 to £4,000. Offences include the sale of alcohol to a drunk person or being drunk and disorderly in a public place

.  Level 4 increases from £2,500 to £10,000. Offences include speeding on the motorway

Magistrate fines collected at the end of 2012/13 reached a record high of £284m and continued to rise during the last financial year, the Ministry of Justice added.

Nissan - trialling self-cleaning paint

.  Nissan has unveiled its nanopaint technology that stops a car getting dirty

.  First car to trial the paint, which costs £450 ($750), will be the Nissan Note

.  The 'super-hydrophobic' and 'oleophobic' paint repels water and oils

.  Nissan says the technology 'could make car washes obsolete'

.  Watch 1min 8 sec video: www.dailymail.co.uk/video/sciencetech/video-1092163/Nissan-developed-self-cleaning-prototype-car.html

Japanese giant Nissan has developed the world's first 'self-cleaning car' which it predicts will make car-washing 'obsolete.'

Its UK engineers are testing innovative 'nano-paint technology' which repels dirt before it gets a chance to take hold on the paintwork. The coating is made by UltraTech International Inc

For drivers who would rather run a mile than wipe down their dirty vehicles with a sponge or wince at the high cost of a car-wash, it means salvation may soon be at hand.

It is set to be an option on future models but is being tested in Britain on the new Sunderland-built Nissan Note which went on sale in October priced from £12,100 to £17,100.

No price has yet been set but it is likely to be around £450 ($750) – or similar to a metallic paint option.

A Nissan spokesman said:

"The Nissan Note is first car to trial paint which could make car washes obsolete.

"Washing a car can be a chore - and a costly one at that. In response, Nissan has begun tests on innovative paint technology that repels mud, rain and everyday dirt, meaning drivers may never have to clean their car again."

Scientists have developed 'super-hydrophobic' and 'oleophobic' paint, which repels water and oils. It has been applied to the all-new Nissan Note supermini to create what it calls 'the world's first self-cleaning car'.

Nissan says it is the first carmaker to apply the trade-marked technology called Ultra-Ever Dry® on automotive bodywork and will be testing it 'in the real world' over the coming months at its European Technical Centre at Cranfield in Bedfordshire.

Explaining how the dirt-repellent coating works, a Nissan spokesman said: 'By creating a protective layer of air between the paint and environment, it effectively stops standing water and road spray from creating dirty marks on the car's surface.'

The Note already features a 'wash and blow dry' function on its rear view camera. This uses water and compressed air to automatically keep the lens free of dirt and ensure the Notes' safety sensors work in all conditions.

A spokesman said: 'So far, the coating has responded well to common use cases including rain, spray, frost, sleet and standing water.'

Chief marketing manager Geraldine Ingham said;

"The Nissan Note has been carefully engineered to take the stress out of customer driving and Nissan's engineers are constantly thinking of new ways to make families' lives easier.

'We are committed to addressing everyday problems our customers face and will always consider testing exciting, cutting edge technology like this incredible coating application."

High Court Judge refuses whiplash damages, describing Britain's compensation culture as a "national phenomenon"

A High Court Judge recently dismissed the claims of two women for whiplash as lies as he said Britain's compensation culture, which costs billions every year, is getting out of control.

Mr Justice Mostyn dismissed the claims as inaccurate and evasive, based on "an improper pecuniary motive," as he refused to grant damages to two women to "stem the tide" of fake insurance claims.

The women, both immigration officers, took at least a week to report any pain from the crash, described as a "little bump" by others. The court heard it took 18 days for her to complain to her GP about any pain, and Miss Hennessy waited a week before she went to her doctor to report any injury as a result of the impact.

Describing Britain's compensation culture is a "national phenomenon", Judge Mostyn said: "It is proper that I should go on to record that I do not accept the evidence of either of them, which I find to be inaccurate, evasive, partial and advanced for an improper pecuniary motive".

"This is yet a further example of the national phenomenon of false whiplash claims being made and it is in an attempt to stem the tide that I do not shrink from making firm adverse findings against them".

Mr Justice Mostyn said expert medical evidence which appeared to back up the accounts of both women was so similar it cast doubt on the professional objectivity of the expert. In identical terms, medical reports said both had suffered "nervous shock and psychological trauma" and endured "recurrent obtrusive memories of the accident and obsessional thoughts as to how she might have been seriously injured."

Both reports, prepared by a consultant physician, said the women had described their physical symptoms as "severe and constant", having taken many months to clear up.

However the court heard that there was no visible damage to the car after the accident and neither woman reported any injury at the time or asked for time off work.

Mr Justice Mostyn added: "Obviously it is, in terms of probability, almost inconceivable that each of these women would have suffered physically or mentally in precisely the same way."

The court heard Denise Withey, the driver of the Skoda Octavia, had described the accident as minor and her account was backed up by Raymond Stevens, a front seat passenger.

Miss Withey had taken photographs of the car which showed no damage was caused by the impact, and Mr Justice Mostyn described her as a "completely honest witness."

He said: "The contemporaneous material clearly shows that the impact was trivial; that no damage was caused to the vehicle; no hurt was suffered by the front passengers and that any hurt suffered by the rear passengers was trivial, of short duration and therefore non-compensable".

He said Miss Withey had no motive to lie and accepted she drove at low speed and the impact was minor.

He also accepted Miss McIntyre had immediately shouted about her neck and said she could make a compensation claim, and dismissed the cases of both women.

Paula McIntyre and Louise Hennessy made the claim against the Home Office after the work car they were in hit a bollard as it drove out of Seaforth Dock in Liverpool in October 2008.

After the crash a colleague heard Miss McIntyre say: "My neck, my neck, I can make a compensation claim."

http://www.motorworldarc.co.uk/news.asp

Bradford 'ghost broker' jailed for fraud by false representation and forgery

Atique Khan, a ghost broker, based from Bradford, has been jailed for promoting invalid car insurance to motorists across the city.

Khan, 33, posed as motor broker and for 5 months to December 2011, when he defrauded both First Central and his clientele - selling false policies to over fifty drivers.

He obtained true policies from First Central, by delivering the insurer with false information and forged no claims paperwork to get premiums at a cheaper price tag.

He then charged drivers more than the premium, plus a managing fee, for insurance that was immediately invalid due to the misinformation.

The scam was exposed in January 2012 when Initial Central discovered all of the policies incorporated identical email addresses, and referred the situation to the City of London Police Insurance Fraud Enforcement Department (IFED), which launched a criminal investigation.

Khan was arrested at his home in the Queensbury district of Bradford, in which officers seized numerous insurance documents, £1,000 in cash, a computer, laptop, 2 iPads and many mobile phones, on which forged no claims documents were found.

In court in March, Khan pleaded guilty to 5 counts of fraud by false representation, 14 counts of utilizing a forged article and one particular count of possession of criminal residence, and he was this morning jailed for 12 months.

DS Mark Forster, who led the IFED investigation, stated: "Khan devised a car insurance scam that saw him ruthlessly target members of his neighbourhood to make thousands of pounds.

"He left his victims unknowingly out on the street with no insurance, exposing them and other drivers to risk and economic loss, but now the court has ensured he will pay out the cost for his fraud."

http://www.motorworldarc.co.uk/news.asp

Low petrol prices fail to stimulate pump sales

The AA says that petrol prices are at their lowest for nearly three years but lower prices failed to revitalise UK pump sales during the last quarter of 2013, as new government figures reveals.

Overall, petrol demand in 2013 fell by more than 850 million litres, equivalent to 19 days consumption.

Demand for petrol from October to December fell 4.2% compared to the same period in 2012, but the big four supermarkets were hit hardest with a 4.9% reduction while other retailers saw sales fall 3.6%.

Diesel

Sales of diesel at Tesco, Sainsbury's, Morrison's and Asda fared better than on non-supermarket forecourts, with a 2.8% boost in the final quarter of last year as opposed to a 1.5% increase at non-supermarket fuel stations.

Overall, UK diesel demand from October to December rose 2.0%, helped by a 2.0% rise in commercial sales.

A 4.3% boost to supermarket sales of diesel contributed most to an overall 1.8% increase in UK diesel sales in 2013 compared to the year before. This added more than 450 million litres to demand or the equivalent of an extra week's consumption.

Balancing spending

"From September to November, the pump price of petrol fell from a late summer peak 138.38p a litre to a low of 130.13p, before hovering around the 131p level for the rest of the year. In 2012, petrol sales recovered when prices fell – but not in 2013," says Edmund King, the AA's president.

"We think that, having learnt to use car travel and fuel consumption as a budgetary lever, UK families reacted accordingly when faced with the threat of a 10% rise in domestic energy costs. In December, when we gauged how 17,629 AA members would respond to a power cost surge, 35% said that cutting back on car use was their way to balance spending."

Fight back?

Although supermarkets have been charging more consistently for fuel, with the price gap between rural towns much less, their share of petrol sales has fallen more than for other retailers.

Price-matching and reward point schemes that offer pretty much the same may have made it harder for consumers to distinguish between the two types of retailer. However, Tesco's new reward card fuel offer may indicate a fight back that other supermarkets will follow. More competitive diesel prices, though, seem to be working better for supermarkets.

http://www.motorworldarc.co.uk/news.asp

Bad driving habits revealed

A new survey into the bad habits of British drivers has uncovered:

.  58% of people will risk cutting across another vehicle if they are not in the correct lane;

.  77% sometimes or regularly eat/drink while driving;

.  45% of motorists are willing to speed by 20 mph or more on dual carriageways and motorways;

.  81% check out other drivers to see if they're attractive.

Aggressive Driving

Aggressive driving is a common problem on roads across the world, and the UK is no exception, as our survey has revealed.

Cars in front of us not going as fast as we'd like prove to be one of our biggest bug-bears, with tailgating representing the most common response.

61% of those surveyed admitted to tailgating the car in front when they weren't going as fast as they were, with almost 1 in 4 of us (24%) claiming to do so 'often' or 'all of the time'.

More aggressive reactions such as flashing headlights, sounding the horn or gesturing were less common, with 73% claiming to never do so, however at least 10% of respondents admitted that this is how they deal with this situation 'often' or 'all of the time'.

It was also surprising how many of us will take a risk cutting across another driver if they are in the wrong lane. Although only 14% will do so often or more, a massive 44% will do so if they "think it is safe".

Distractions

Despite recent laws toughening up on using a mobile phone while driving, a significant proportion of UK drivers will still take a call or send a text when behind the wheel.

Although the majority of motorists would never take a call on a handheld phone (65%) or send a text (63%) while driving, 51% would answer a hands-free phone (20% 'All of the time'; 31% if they thought it was important),

However we're even more distracted by food and drink behind the wheel, with 26% of respondents eating or drinking whenever they felt the need, and over half (51%) doing so at least some of the time.

The car radio/CD player and sat-nav are also common distractions for modern drivers, with only 6% of those surveyed claiming to never adjust either of them while in motion.

Signalling

We all know the importance of indicating our intentions when out on the road, and 83% of respondents only fail to indicate if they forget to do so, while 81% check to make sure the various bulbs are working correctly at least every 3-6 months.

Speeding

Speeding to some degree is undoubtedly one of the most common habits drivers display, and a staggering 38% of drivers admit to speeding on ALL kinds of roads - even those where vulnerable road users may be present.

Unsurprisingly, it is on dual carriageways and motorways where people are most likely to speed, with 45% of motorists happy to drive at least 90 mph, while almost 1 in 4 (24%) claiming to speed by as much as they can feel they "can get away with".

The percentage of those who claim to never speed on 40 mph, 50 mph and 60 mph roads increases to 30%, while the majority also speed by up to 10 mph at least on 30 mph roads (58%).

Even on 20 mph roads and school zones the percentage of motorists willing to speed is 38%, with almost one third of those willing to do so by 20 mph or more.

Perhaps the most telling statistic though is to the question of whether motorists believe their bad habits put themselves or others in danger. Almost half (44%) claimed that their bad habits weren't dangerous, while 37% felt that the risk was not greater than any other driver.

http://www.motorworldarc.co.uk/news.asp

Crash for Cash - Reading gang arrested in raids

Police have arrested four men after raiding properties across Reading as part of an investigation into "crash for cash" insurance scams.

Officers searched buildings in Cardiff Road, Wantage Road, Cholmeley Road, Elm Park Road, and Elm Lodge Avenue.

The men, aged 27, 30, 38 and 39, and all from Reading, were arrested on suspicion of fraud.

"Crash for cash" is thought to involve people staging collisions in order to make claims against motorists.

Thames Valley Police (TVP) is investigating crashes between March and September 2013 in the South and Vale, Abingdon, and Oxford areas, in what is being called Operation Shunt.

Police said a "substantial amount of cash was seized" and that another man, 27, has detained by immigration enforcement officers.

Det Insp Louise Roddy said: "The types of offences we have been investigating present a risk to the public so this operation sends out a clear message that TVP takes such offences seriously and will deal with any offenders robustly."

http://www.motorworldarc.co.uk/news.asp

Insurance Fraud Enforcement Department (IFED) - 17 arrested in nationwide raids by police tackling 'credit hire fraud

17 people have been arrested in raids across England by detectives investigating criminal gangs making false insurance claims for courtesy cars provided to motorists while their own vehicle is being fixed.

20 warrants were executed at business and residential addresses in Essex, Hertfordshire, Lancashire, London, Northamptonshire, Nottinghamshire, Surrey and West Yorkshire, yesterday morning (Wednesday 26 March 2014) in a police day of action that marks the culmination of months of investigation by the Insurance Fraud Enforcement Department (IFED).

One hundred officers took part in the operation that saw the City of London Police unit supported by colleagues from the force's Economic Crime Directorate and officers from local forces.

Criminal gangs typically set up phoney, or use corrupt, claims management and hire companies to commit this type of insurance fraud, known by industry as 'credit hire fraud'.

Through these businesses the fraudsters will invoice insurers for a courtesy car they have not actually provided, commonly called 'phantom hire'.

In other instances they will 'lease' the same courtesy car to different motorists at the same time and put in a separate claim for each fictional hire, often known as 'cross hire'.

Sometimes they may also bill an insurer for providing a top spec courtesy car when only a basic model was given. Hire periods are also often exaggerated.

DCI Dave Wood, Head of IFED, said:

"This operation reveals credit hire fraud as a nationwide problem which IFED is tackling through a co-ordinated law enforcement response.

"While insurers are the criminals' intended victims, innocent motorists ultimately pay the price in terms of the impact of insurance fraud on the cost of premiums.

"Insurer diligence, coupled with enforcement action being taken by IFED and supported by local police forces, is paramount to confront this threat now and in the future."

Arrest breakdown across the police force areas as follows:

· Lancashire = 3

· London = 9

· Northamptonshire = 1

· Nottinghamshire = 2

· West Yorkshire = 2

The 17 people were arrested on suspicion of a variety of offences including fraud by false representation, conspiracy to defraud, money laundering and forgery.

http://www.motorworldarc.co.uk/news.asp

IFB welcomes jail term for fraudsters

The Insurance Fraud Bureau (IFB) has welcomed the further sentencing of three convicted insurance fraudsters, for failing to repay their ill-gotten gains.

Originally sentenced to jail in 2010 for submitting over 100 fraudulent insurance claims, brothers Nadeem and Amer Dad and their father, Munsif Dad, were also required to repay almost £280,000.

As Nadeem and Amer haven't repaid a penny, and Munsif has only funded a third of what was expected of him, all three have been sentenced to a total of almost four and a half more years in prison.

Investigators had previously secured a £51,800 confiscation order against Nadeem Dad over a scam which saw false claims made for storm damage, car crashes and even lost pedigree bulldogs.

Ben Fletcher, Director of the Insurance Fraud Bureau said: "This decision sends an important message to insurance fraudsters everywhere; if you expect your illegal profits to be waiting for you when you get out of jail you'll be back there quicker than you expect. We wholeheartedly support the actions of the Crown Prosecution Service and their pursuit of fraudsters who somehow think that they are entitled to keep their illegal nest-egg."

The IFB was formed in 2006 to spearhead the collective fight against organised insurance fraud. Since its inception, the IFB has assisted police with over 915 arrests and helped secure total jail terms of more than 235 years for organised fraudsters."

Det Insp Dave Groombridge, of Pennine CID, who investigated the case had previously said: "Fraudulent claims hit the pockets of the decent law-abiding public with every resident, motorist and trader facing increased premiums to compensate for the greed of these criminals.

"Nadeem Dad not only received a custodial prison sentence, but he has also had to face the consequences of his actions by repaying a significant amount of his ill-gotten gains.

"I hope this sends out a warning that if we find you with cash that you cannot account for, you will be targeted."

'Crash for cash' - 17 charged in connection with alleged bus smashes

The Liverpool Echo has reported that Cheshire police have charged 17 people in connection with alleged 'crash for cash' bus smashes.

They report says that four Merseysiders were among those charged in connection with the conspiracy to commit fraud - this follows a 20-month investigation.

The charges all relate to alleged staged bus crashes in and around Chester between 2010 and 2012.

The force said the crashes involved 215 people claiming for whiplash on seven different bus collisions.

Among those charged in connection with the investigation were:

Mark Taylor, 47 of Vyner Park, Prenton
Christopher Bethell, 28, of Crosthwaite Avenue, Eastham
and Sean Kettyle, 42, of Westminster Road, Ellesmere Port.

All three were bailed to appear before Manchester Magistrates' Court on December 19.

Rachel Cooper, 31, of Oxton Green, Great Sutton, Ellesmere Port, was bailed to appear the following day, December 20.

http://www.motorworldarc.co.uk/news.asp

Competition Commission warned ruling against "best offer" clauses would "rewind" motor insurance by 10 years

Price comparison website Compare the Market hopes the Competition Commission's will leave "most favoured nation" clauses untouched in review of private motor insurance.

Ahead of the Competition Commission (CC) publishes their provisional findings, which has been delayed again as reported by News from ABP on Friday, Paul Galligan, the managing director of Compare the Market, has warned the market would "rewind" by up to 10 years if the CC rules against controversial "best offer" clauses that are insisted upon by price comparison websites (PCWs).

The Sunday Telegraph outlined the scope of the investigation, which has extended to also look at motor insurance PCWs after requests from insurers who are angry about "most favoured nation" (MFN) clauses. The MFN clauses stipulate that insurers have to offer their "best prices" in order to for their premium quotes to appear on PCWs.

However, Mr Galligan, whose firm has attracted particular anger for insisting on "wide" MFN clauses, defended the practice.

He said they are essential to the effective operation of price comparison sites and vowed that Comparethemarket.com would fight for their continued use.

"We know these clauses have made us unpopular in the marketplace with insurers," he said. "But, if you're going to appear on Comparethemarket, we expect your very best price. As a price comparison site, I can't possibly imagine a time when we could compare anything but.

"If you look at some of the language and hype that surrounds these clauses, the legalistic jargon and the arguments between insurers and the Competition Commission, there's a real risk that the needs of the consumer get lost.

"Without these clauses, the market would rewind eight, nine or 10 years and lose a lot of the transparency we've brought to bear. It would be a massive step backwards."

"Narrow" MFN clauses mean that insurers whose premiums are quoted on PCWs can only offer the same or higher rates on their own websites.

However, Comparethemarket is unusual in insisting on a "wide" MFN clause, forbidding insurers from offering a cheaper price anywhere in the market.

"We're not the focus of this investigation but I think we have the most proactive stance and that's something we're going to maintain," said Mr Galligan.

"We're confident the commission will see through a lot of the bluster and hype and realise that if these clauses are done away with, there's only one winner – the large insurers. And only one loser – UK consumers."

PCWs are now estimated to be used by more than half of UK consumers seeking new insurance quotes.

http://www.motorworldarc.co.uk/news.asp

Traffic volumes - up 2.3% in Q3 2013 to highest quarterly level for four years; huge growth in recent years in van traffic

The overall level of traffic in Great Britain in Q3 (July to September) was 2.3% higher than Q3 2012.

However, Q3 2012 saw extremely high levels of rainfall, with the summer of 2012 being the second wettest since records began. This poor weather in 2012 may have put people off making trips, and the relatively drier weather in 2013 is likely to have contributed to the growth in road traffic, compared to last year.

Since 2008, the trend in overall traffic volumes has been fairly flat, although Q3 2013 is the highest quarterly traffic estimate since Q3 2009.

Q3 2013 compared to Q3 2012:

- overall traffic showed a 2.3% rise in volume
- LCV (vans) traffic grew by 5.1%
- HGV traffic grew by 2.7%
- Car traffic fell by 1.9%

Q3 2013 compared to Q3 2003 eg 10 years ago:

- overall traffic showed a 1.2% rise in volume
- LCV (vans) traffic grew by 19.2%
- HGV traffic fell by 9.9%
- Car traffic fell by 0.1%

Q3 2013 compared to Q3 1993 eg 20 years ago:

- overall traffic showed a 20.3% rise in volume
- LCV (vans) traffic grew by 66.7%
- HGV traffic grew by 5.4%
- Car traffic grew by 15.8%

http://www.motorworldarc.co.uk/news.asp

IFB (Insurance Fraud Bureau) - proposes 3 point plan for tackling rogue claims management companies

Speaking at a Westminster Legal Policy Forum event exploring the future of claims management regulation today, Director of the Insurance Fraud Bureau (IFB), Ben Fletcher, outlined a three point plan for tackling rogue Claims Management Companies (CMCs) involved in organised insurance fraud.

Claims Management Companies have long been common enablers of "crash-for-cash" fraud investigated by the IFB, with 53% of live police Operations assisted by the Bureau focusing on a suspected rogue Claims Management Company.

Whilst Fletcher recognises there is no "silver bullet" that will eradicate the problem, continued collaboration between the insurance industry, police and regulators, is deemed essential.

Fletcher outlined 3 measures to complement and enhance that work:

1 - Greater onus on front end checks for Claims Management Companies to prevent unscrupulous businesses being authorised to trade in the first place;

2 - Claims Management Companies themselves proactively sharing intelligence with the IFB about suspected fraudulent behaviour;

3 - Make disclosure of the referral source within the claim notification form a mandatory requirement.

Ben Fletcher, Director of the IFB – a not-for-profit agency tasked with investigating and disrupting organised motor insurance fraud – said:

"Whilst many Claims Management Companies are genuine, we know from years of operational experience that some are set up by criminal gangs solely to mask organised insurance fraud.
The 3 measures we are proposing will help us identify them, prevent them from posing a severe financial risk to our industry, investigate them and bring fraudsters to justice."

Case study: Claims Management Company boss jailed for 7 years

In August 2012, CMC boss Masi Naqshbandi was found guilty of staging hundreds of road traffic accidents in order to make insurance claims, which would have been worth over £6.5 million. Naqshbandi was sentenced to seven years in prison. (See ABP News of 7 August 2012)

Between 2007 and 2008, Naqshbandi and his accomplice, Sabaoon Hillaman, submitted over 250 fraudulent insurance claims through their London-based claims management company – Real Accident Helpline.

In some cases, vehicles were deliberately crashed or damaged to mimic a road traffic accident.
In other cases, accidents were entirely made-up by presenting false names and paperwork.
In all cases, credit hire, personal injury and inflated damage costs meant each claim was
worth tens of thousands of pounds.

http://www.motorworldarc.co.uk/news.asp

BBC - high level of used car complaints prompts government action

The government is expected to announce the creation of a commission to look at the reasons behind high levels of complaints surrounding used car sales.

Second-hand car sales by independent traders consistently top the list of gripes according to the Citizens Advice consumer helpline.

Consumer and industry groups are being invited to discuss the trend and report back by the spring next year.

Trade bodies say complaints are dealt with quickly by reputable dealers.

Used car buyers are being given purchasing tips and reminded of their rights as part of National Consumer Week, which starts on Monday.

The campaign is aimed at preventing the kind of situation that 22-year-old graduate Natasha Akintunde found herself in.

She bought a used Nissan Micra, with low mileage, for more than £1,000, only for the clutch to fail within weeks.
She said she found out later that the car had been an insurance write-off.
She was given a replacement, but said the brakes failed when her mother was driving it home from the seller.

"It has put me off driving for a while, because of the worry of what happened. I just want my money back, I don't really want to buy another used car," she said.

Buyers are being encouraged to go through a checklist before they buy a second-hand car. Tips include:

- Checking documents such as the MOT certificate, service history and V5 registration document
- Checking the mileage and other history details, using a free online database
- Getting a mechanic to check the technical aspects of the car

Consumer minister Jo Swinson said it was vital, with seven million used cars sold every year , that consumers were "better equipped to make good decisions" when buying cars.

"Rogue dealers are going to find there is action taken against them. They need to shape up, because they are not going to get away with it," she said.

Stuart James, director of the RMI, agreed there were unscrupulous operators in any business, but said many car sellers were reputable and would deal quickly with genuine complaints.

He said many of the calls to Citizens Advice were from people seeking information about their rights, rather than actual complaints about traders.

There are many approved schemes that have independent arbitration if things go wrong.

The RMI has set up the Trust My Garage scheme that ensures members that carry the badge adhere to a code of practice.

There are certain rights that people can fall back on if they discover a problem soon after driving off the forecourt.

Any purchase must be as described by the seller, of satisfactory quality given its age and the price paid, and be roadworthy.

Andy Foster, director of operations and policy at the Trading Standards Institute, said this meant traders should generally offer a repair if something goes wrong within a few weeks, assuming the problem was not pointed out at the time the car was sold.
A replacement or even a refund could be available.

If the problem occurred after a number of months, then the buyer might have to prove that the fault existed at the time of sale in order to get a repair.

However, buyers have fewer rights if they buy the car from a private individual, such as through an internet auction site.

http://www.motorworldarc.co.uk/news.asp

Thatcham Research - Crash prevention will be the ultimate key to 5-star cars

Coveted 5-star safety ratings may soon be awarded only to those cars that can avoid or reduce the impact of a crash, as Autonomous Emergency Braking (AEB) marks the way forward for future road safety, according to Thatcham Research.

Euro NCAP today releases data on AEB crash tests, collected from approved test centres around Europe. Half of the tests* were carried out by Thatcham, the British motor insurers' automotive research facility.

Thatcham has been researching and testing Autonomous Emergency Braking (AEB) systems on behalf of insurers for the last 3 years and has carried out hundreds of tests on a wide range of new vehicles.

Peter Shaw, chief executive of Thatcham Research said: "The vast majority of major vehicle manufacturers are already providing AEB technologies on their vehicles and such is their effectiveness, we are delighted that international safety body Euro NCAP will incorporate the Thatcham led test as part of their overall vehicle safety standard in 2014. We expect that, by 2016, cars will find it increasingly difficult to achieve a 5-star rating unless they have this powerful safety measure. UK insurers are already offering favourable insurance groupings on vehicles fitted with AEB as standard – a clear sign of its effectiveness."

"The evidence from our testing is undeniable, and combined with a growing body of real world research and evidence we firmly believe that AEB and other ADAS (Advanced Driver Assist Systems) have a critical role to play in avoiding both common low-speed bumps that can cause injuries such as whiplash, and mitigating injuries and fatalities from medium-speed crashes," said Shaw.

*Thatcham carried out AEB testing on the following vehicles:
Ford Focus (Active City Stop)
Volvo XC60 (City Safety)
Volvo V40 (City Safety + Collision Warning with Full Autobrake)
Mercedes E-Class (Pre-Safe Brake)

http://www.motorworldarc.co.uk/news.asp

Ministry of Justice (MoJ) - announces further measures to clamp down on 'whiplash fraudsters'

Justice Secretary Chris Grayling is today announcing measures to help motorists to cut the cost of running a car including:

- a crackdown on whiplash fraud
- a freeze on MOT test prices
- a scheme designed to reduce the cost of fuel at motorway service stations,

Average motor insurance premiums have already fallen by more than 12% over the past year, equivalent to an £80 reduction on an average policy, thanks to Ministry of Justice reforms to no-win, no-fee deals and action on rogue claims firms - according to new statistics from the AA.

Justice Secretary Chris Grayling said:

"We are turning the tide on the compensation culture and helping hardworking people by tackling high insurance premiums and other motoring costs.

"It's not right that people who cheat the insurance system get away with it while forcing up the price for everyone else - so we are now going after whiplash fraudsters and will keep on driving premiums down."

He has announced today that:

. Whiplash cheats, whose bogus compensation claims have helped to force up average motor insurance premiums, will be targeted by new independent medical panels which will ensure only evidence from accredited professionals can be considered.
This will mean people can no longer profit from exaggerated or fraudulent compensation claims but victims with genuine cases can still get the help they deserve.
These will be introduced from next year.

. The statutory maximum price of the MOT test for a car will be frozen at £54.85 until 2015 - potentially saving up to £50m for drivers every year.

. Action will be taken on high motorway fuel prices. New comparison road signs will be trialled which will show prices at different service stations along a route, making it easier for drivers to get the cheapest deal and encouraging competition on prices.

. The fees charged for the driving test will be reviewed, including the current £31 for the theory test, £62 for the practical test and £50 fee for the provisional licence, to identify any opportunity to save money for the 1.5m car drivers who take their test every year.

Roads Minister Robert Goodwill said:

"The costs of owning and running a car are felt by millions of households and businesses across the nation. The Government is determined to help keep those costs down. That is why we are freezing the price for an MOT test and looking again at the costs associated with getting a driving licence.

"We also want to make it easier for people to get a better deal on fuel at motorway service stations, for instance through a trial of motorway signs that will show motorists the different fuel prices on offer on their route."

New statistics from the AA show that motor insurance premiums are now falling at the fastest rate since 1994 - a fall of 12.3% in the year to October for an average comprehensive insurance policy, from £648 in October 2012 to £568 in October 2013.

New figures from the MoJ's Claims Management Regulation unit also show that the number of claims firms in the market has plummeted by more than 1,000 following the law changes, from a peak of 2,553 in December 2011 to 1,485 last month. The firms are responsible for bombarding the public with adverts for profitable compensation claims.

Despite these successes whiplash claims remain an issue which Government will continue to fight. The number of claims has fallen since 2011 but there were still almost half a million whiplash claims in 2012.
Insurers say these claims cost them more than £2bn in payouts and lead to an average premium increase of £90 for drivers.
Each whiplash compensation payout costs an average of £2,400 insurers say, with an additional £2,000 in legal costs.

The Government will now work quickly with experts to implement the independent medical panels.
This will include developing a scheme for accrediting medical experts who can assess whiplash injuries, enhancing the medical reporting process, improving information for medical assessments and carrying out spot checks to ensure quality.

Plans for improved data sharing by insurers will also help police, including the specialist Insurance Fraud Enforcement Department, to track down criminal fraudsters.

Prime Minister David Cameron pledged action to tackle high insurance premiums following a summit with the insurance industry in February 2012, where insurers committed to pass on savings to their customers.

Since then the Ministry of Justice has:

. Transformed no win, no fee deals so lawyers can no longer double their fees if they win, at the expense of defendants and their insurers.

. Banned "referral fees" paid between lawyers, insurers, claims firms, garages and others for profitable claims - which have driven the growth of compensation culture.

. Reduced by more than half the fees lawyers can charge insurers for processing basic, uncontested claims for compensation for minor injuries suffered in road accidents - from £1,200 to £500.

. Banned claims firms from offering cash incentives or gifts to people who bring them claims. Recommend a friend deals also banned, along with contracts agreed only over the phone.

http://www.motorworldarc.co.uk/news.asp

Uninsured driving - police make £218,000 profit from selling-off uninsured Lamborghini Aventado

Police made a tidy £218,000 profit today after a seized Lamborghini Aventador was auctioned off when the owner failed to come forward to claim it. 

ABP carried the news on 3 October that the car had been seized after being stopped in Newham, East London aspart of Operation Cubo, an on-going Police action to crack down on uninsured vehicles.

The Lamborghini was stopped because its front number plate was missing, causing police to carry out further checks when they discovered that the driver had no insurance.

When the owner failed to provide the correct paperwork, the car was put up for sale at Manheim's in Colchester.

http://www.motorworldarc.co.uk/news.asp

27 arrested in 'ghost broking' fake car insurance scams

Twenty-seven people have been arrested in dawn raids across the country by detectives investigating the sale of fake car insurance policies, a practice commonly known as 'ghost broking'.

Twenty-eight warrants were executed in the Leicestershire, London, Manchester, Thames Valley, West Midlands areas early this morning (Wednesday 9 October 2013), in a police day of action that marks the culmination of months of investigation by the City of London Police's Insurance Fraud Enforcement Department (IFED).

One hundred and sixty-eight officers took part in the operation, with the City of London Police unit supported by colleagues from the force's Economic Crime Directorate as well as officers from Greater Manchester, Leicestershire, Metropolitan, Thames Valley and West Midlands police forces.

Ghost brokers often target young drivers by offering cheap deals but anyone who buys one of their policies will find themselves driving without insurance, which could lead to their car being seized by police, fines, penalties and a criminal record. Uninsured drivers will also have to pick up the bill for any damage or injuries they cause in a crash.

IFED has already brought to justice ghost brokers who have tried to sell or sold cheap fake car insurance policies online, using phony websites as well as genuine classifieds and social media websites. The unit has had reports of ghost brokers operating in communities, approaching people in restaurants and internet cafes as well as on university campuses.

DCI Dave Wood, Head of IFED, said: "This day of action reveals ghost broking to be a UK-wide problem which is being met by a national law enforcement response, led by IFED.

"The consequences for innocent motorists who fall victims to ghost brokers can be dire, so it is absolutely vital that drivers shopping for car insurance online, or through other means, question what they are being offered to ensure they get a real deal.

"Driver diligence, coupled with enforcement action being taken by IFED and supported by local forces, is the best way to confront this threat now and in the future."

Advice for drivers on how to secure the cheapest legitimate policy possible is available on the
Association of British Insurers' website.

Anyone who believes they have fallen victim to insurance fraud should contact Action Fraud.

Information on suspected ghost brokers can be reported confidentially through the Insurance Fraud Bureau's Cheatline, powered by Crimestoppers, on 0800 422 0421.

Arrest breakdown across the police force areas as follows:

.  Greater Manchester Police = 3
.  Leicestershire Police = 1
.  Metropolitan Police = 9
.  Thames Valley Police = 3
.  West Midlands Police = 11

The precise offence the 25 people were arrested on suspicion of is fraud by false representation. One person was arrested on suspicion of burglary and another was arrested on suspicion of immigration offences.

http://www.motorworldarc.co.uk/news.asp