Former Justice Secretary Jack Straw has caused controversy recently with a statement that implies part of the huge recent increase on car insurance is actually the responsibility of the industry itself, with the referral fees process (the selling of details of accidents to no win, no fee lawyers) significantly contributing.

The Labour MP stated that the ‘dirty secret’ of the insurance industry had led to the doubling of personal injury claims to £14 billion over the course of ten years, meaning that premiums had massively risen of a result.

One indication that Mr Straw made the public aware of was of his constituent Phil Riley, who had been ‘bombarded with texts and personal calls’ after he had been involved in a very minor accident where he had suffered no injury.

Mr Straw also noted that some Police Forces had also been involved in the practise, with one particular force making £1.3 million across 2008-09 as a result. 

With the amount of claims companies having doubled up to 3,400 in the last two years, the MP has called for them to be more closely regulated, and also seeked to have their high pressure sales techniques curbed.  The Association of British Insurers has supported Mr Straw’s feelings on the matter.

For more news from UK motoring, continue to check into the Rescue My Car blog.