17th Nov 2016 09:24
LONDON (Alliance News) - NAHL Group PLC said Thursday that the contents of the UK government's consultation on restricting compensation for whiplash claims were in line with its expectations, but admitted it is trialing alternative business structures in response.
The UK Ministry of Justice on Thursday published the results of a consultation on the rise in whiplash claims, proposing that compensation claims be either banned or capped at GBP425. Other suggested reforms included requiring medical reports from an accredited expert for the payment of compensation and introducing a tariff system for injuries more serious than whiplash.
Shares in AIM-listed NAHL, which offers personal injury legal services via the National Accident Helpline, including large numbers of whiplash claims, were down 12% at 197.00 pence on Thursday following the government announcement.
"NAHL, through National Accident Helpline, the group's PI division, has been fully supportive of the government's work in tackling insurance fraud via its involvement in the Insurance Fraud Task Force and we welcome the increased clarity the consultation will bring," said the company.
NAHL said that from an initial review it believes the consultations results were in line with its expectations.
However, the company also said that it is currently "trialling an initial small proportion of our enquiries through different commercial and structural arrangements to those we normally deploy", without providing further details. NAHL said will provide an update on this initiative in its full-year results, which it usually provides in late March.
By Adam Clark; [email protected]
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