Fake tinnitus car crash claims are the ‘new whiplash’ and they could push up insurance bills by more than £90 a year
MOTORISTS could see their car insurance premiums increase by over £90 a year as companies pass the cost of fake tinnitus claims onto consumers.
With the government cracking down on false whiplash claims, lawyers and insurers fear that tinnitus claims could become the "new whiplash".
Tinnitus suffers hear noise or ringing in their ears and it's believed to affect 6million people in the UK and it can be triggered by a car crash.
Drivers saw their yearly insurance costs rise by up to £90 a year in 2016 due to a surge of whiplash claims that cost insurers £2bn a year.
The government eventually had to step in to help cut costs by changing claim limits and requiring claimants to provide medical evidence.
These new rules kick in from April 2020 and the government has set up a portal for whiplash claims so people can handle their own cases.
Now, some fraudsters are claiming they’ve developed tinnitus after a road traffic collision in an attempt to claim extra cash, according to The Telegraph who first reported the rise in fraud cases.
Alex Borgnis, head of Churchill car insurance, said that fraudsters are likely to start finding new ways to scam insurers.
He said: “As legislation changes, fraudsters change their tactics to find alternative ways to take money from our honest policyholders.
"With the introduction of Whiplash Reform, we are already anticipating fraudsters changing their tactics by claiming for other ‘types of injury’."
What is tinnitus?
TINNITUS is the sensation of hearing noises in your ear or head when there is no external cause.
It can sound like ringing, buzzing, whooshing, humming, hissing throbbing or even music.
The sound can be heard in either one or both ears, or in your head.
It may come and go, or you may hear the sounds all the time.
The cause of tinnitus is unclear, but it can be linked to certain diseases and medications.
It can also be caused by exposure to loud noises or a head injury.
You should see your GP if your tinnitus is constant, getting worse or bothering you - such as affecting sleep or concentration.
Doctors can examine your ears to see if the tinnitus is caused by a treatable issue such as an infection.
But, if the cause of your tinnitus is unknown or cannot be treated you may be referred to therapy to help cope with the symptoms.
You can find out more about the condition by visiting the British Tinnitus Assocation website.
And, as David Williams of AXA Insurance points out, tinnitus claims are much more attractive to criminals, because "the average tinnitus claim is settled at a much higher amount than the average whiplash claim".
That means car insurance prices could rise as new whiplash legislation comes in and fraudsters switch to more lucrative options.
Tinnitus claims are pricier because the condition cannot be treated and is often a lifelong condition.
And, much like whiplash, it is diagnosed by a sufferer describing symptoms and its presence can be difficult for a doctor to verify.
That makes it very tricky for insurers to stop fake claims without harming real sufferers.
According to recent Judicial College guidelines, you can claim up to £8,000 for minor to moderate whiplash injuries, but most claims are under £5,000.
But, claims for tinnitus can range from £6,000 up to £40,000, with even mild tinnitus claims costing up to £11,000.
What is whiplash?
WHIPLASH is a type of neck injury caused by a sudden movement of the head.
It is caused by the soft tissues in the next becoming sprained or damaged.
Symptoms of whiplash include neck pain, stiffness or tenderness in the neck, headaches, muscle spasms and pain in the shoulders and arms.
Other less common symptoms include pins and needles in your arms, dizziness and memory loss.
The symptoms usually develop within a few hours of the injury and will get better within a few weeks or months.
Whiplash is commonly caused by road traffic collisions, sudden blow to the head or slips and falls.
Always visit your GP if you experience an injury as a result of any of these incidents.
Whiplash is most commonly diagnosed by a simple examination, and can be easy to fake.
You usually will require minimal treatment, but painkillers and physiotherapy are sometimes advised.
Visit the NHS UK website for more information.
So, since tinnitus claims are so much more expensive, premiums are expected to rise by more than the £90 increase caused by whiplash claims.
Dan Hutson, head of motor at comparethemarket.com, said that history could repeat itself if action wasn't taken.
He said: "Motorists across the country will undoubtedly remember the flood of minor, exaggerated and fraudulent whiplash claims in recent years.
"The government announced a crack-down on excessive whiplash claims, which were increasing premiums for all motorists to the tune of £90 a year.
"The last thing a majority of honest, law-abiding motorists want to hear is the emergence of a ‘new whiplash’ scandal, with fraudulent claims potentially increasing premiums for everyone."
And, Salman Haqqi personal finance expert at money.co.uk, warned that further government intervention may be needed to keep costs down.
He said: “When it was eventually proved that many of the whiplash claims were potentially fraudulent, it took government intervention to get on top of the problem.
"So, I would not be surprised if we see something similar happening, if this proves to be the case with tinnitus."
The Association of British Insurers said it wasn't aware of any significant rise in tinnitus claims, but that fraud trends were being monitored.
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