Could In-car Telematics Reduce The Number Of Whiplash Claims?

An increase in the number of personal injury whiplash claims has raised the cost of motor insurance by almost 40%, according to research by the AA. Ian Faulkner, Managing Director of project resourcing company Metaskils, has suggested that the advent of new technology should be embraced by insurers to help the fight against fraud.

Although whiplash is one of the most commonly sustained injuries from road traffic accidents, the condition is still regarded as something of an enigma in the medical world. Whiplash is sustained usually as the result of a rear impact collision. The momentum of the impact send the head first forward and then back, extending the neck, spine and surrounding soft tissues beyond their usual range of motion. This can result in the muscles, tendons and ligaments being stretched, strained and torn, giving rise to a variety of symptoms. These symptoms can range in severity from mild neck pain and headaches to blurred vision, tinnitus and loss of mobility in the arms and upper body.

Diagnosis difficulties

What makes whiplash so difficult to diagnose is that there are often no outward signs of injury - all the damage is sustained inside the body. As a result, medical professionals have little to rely on other than the testimonial of the victim. Consequently, whiplash is one of the most commonly faked or exaggerated injuries in the insurance world. However, research is being conducted into the conditions that cause whiplash; the Wilhelm University in Munster, Germany, has recently conducted a series of experiment which suggest that the minimum speed required to sustain whiplash is around 6.2mph. A judge in Bolton has recently thrown a whiplash claim out of court when it was revealed that the impact occurred at less than 2mph.

Black box technology

Ian Faulkner is suggesting that telematics could be an aid to discerning genuine claims from false ones. Telematic technology is much the same as used in black box flight recorders on aeroplanes. Faulkner says that "The use of in-car telematics devices is an obvious solution, whereby insurers can make judgements based on real data on the circumstances surrounding a claim such as speed, location, time of accident and whether there was sufficient impact to have caused whiplash or other injury."

Faulkner sees a further benefit to the motorist. The Equality Act of 2010 means that it is illegal to discriminate against people based on their age or sex. In insurance terms, this means that soon insurers will no longer be able to discern between younger and more experienced drivers or the habits that differentiate men and women. Consequently, as a 'what's sauce for the goose' approach is implemented, drivers are likely to see their premiums increase even further.

Ian argues that telematic technology will allow each case to be assessed on its individual merits and any data that has been collected regarding the driver's habits and history. He suggests that embracing telematic technologies to price risk based on the individual temperament and behaviour of each of its policyholders "seems a ready-made solution and one that cannot be ignored." The result could be black box technology fitted to next generation cars, cheaper car insurance for careful drivers and a clarification of the individual circumstances in whiplash claims. That could only be of benefit to careful drivers and genuine victims, whilst making it much harder for the fraudsters to continue to cash in on what has become a notoriously 'easy' claim to make.