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Victim care costs could boost insurance rates
Page 12
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l• Hauliers will pay higher insurance premiums if the Government approves a Law Commission proposal to force negligent drivers to pay the costs of treating their victims.
The commission proposes allowing the National Health Service to recoup the cost of treating accident victims where it can be proved the driver at fault had driven negligently. This could save the NHS around 1120m a year, says the commission.
But insurers who would have to pick up the bills say £120m is a conservative estimate, and if the scheme goes through it warns that premiums could rise by as much as 6%.
The Association of British Insurers says: "The motorists already pay substantial taxes which go towards paying for the NHS—under this proposal they would be paying twice."
The motoring organisations have also condemned the move, saying the rise in premiums would penalise safe drivers. Health Secretary Stephen Dorrell says the proposal will be carefully scrutinized before the Government makes a decision.