AXA takes moral lead on referral fees for whiplash claims
AXA has put pressure on other car insurance companies by being the first to publicly declare that it will no longer accept referral fees for whiplash claims.
The announcement follows a recent outcry against the so-called "compensation culture" which sometimes sees members of the no win, no fee legal industry paying for information about potential whiplash claims.
Group CEO of AXA UK said, "Referral fees have only served to promote an even greater number of injury claims and AXA will stop this practice whilst the Government implements the necessary legislation to restore order. I believe this move will be a positive first step in making the system more equitable and, ultimately, benefit customers through more affordable motor premiums."
The firm's decision to no longer accept referral fees from accident management firms or personal injury lawyers could cost the insurer millions, however, despite this, they say they are determined to take the moral lead in this matter.
*A replacement vehicle can usually be supplied within 4-6 working hours, where there is an admission of liability from the other person’s insurance company. If this person is not known, their insurance details are not known, they are uninsured or there is a potential dispute over who caused the accident, a replacement vehicle cannot be provided.
