Insurers are breathing a sigh of relief today after the Ministry of Justice announced a softening of its drastic cut to the Ogden Rate. The original change, from 2.5 per cent to -0.75 per cent, caused dismay in the insurance industry when it was announced earlier this year. However today the MoJ said the rate will instead be set between 0 and 1 per cent.
Up to 10,000 motorists are legally driving on British roads despite having excessive points on their driving licence, a BBC report has revealed.
There is a standard limit of 12 points on a driving licence before a motorist is banned from driving, however magistrates have the power to waive a ban. Sheena Jowett, deputy chairman of the Magistrates' Association, told the BBC: ‘Automatic disqualification can be avoided or reduced in cases of exceptional hardship. The process is a robust one and the concept of hardship must be proved to an exceptional level.’
Most of the 10,000 motorists had a maximum of 18 points on their licence, however there were 203 with more than 18 points. The most startling case was that of a man from West Yorkshire who was allowed to drive with 62 points on his licence, most of which were accumulated from speeding on a motorway.
Only a couple of months ago the Prisons and Courts Bill was published ready for debate in Parliament. However the snap general election meant the bill was dropped as there was no chance to debate it before Parliament was dissolved.
The proposed whiplash reforms included in the bill were designed to limit fraudulent whiplash claims, and included an increase in the small claims limit to £5,000 for whiplash claims only.
The whiplash measures were expected to cut motor insurance premiums by about £40 per year. With a year that started with record high insurance premiums, due in part to the rise in Insurance Premium Tax and the Ogden rate reforms, this potential saving was a rare piece of good news for motorists.
Insurance regulations should be developed in a way that encourages rather than hinders insurtech, according to a briefing by the industry body Insurance Europe.
The report says that: ‘Insurance legislation, rules or guidelines should be digital-friendly, technologically neutral and sufficiently future-proof to be fit for the digital age and encourage digital innovation’.