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Jonathan Djanogly calls on Government to address confusion over insurance premiums

8th March 2017

Jonathan Djanogly asks the Secretary of State for Justice about the level of insurance premiums following both the lowering of the discount rate for compensation for accident victims and measures on whiplash in the Prisons and Courts Bill.

Mr Jonathan Djanogly (Huntingdon) (Con)

There seems to be some element of confusion in the minds of the public. The insurance industry says that car insurance premiums will go up because of the fall in the discount rate, while the Government, quite rightly, say that insurance premiums should come down because of the proposed changes in the Prisons and Courts Bill. Is this a question of netting off, with no change to premiums at all, or can the Lord Chancellor be slightly more scientific?

Elizabeth Truss

My hon. Friend makes the point that there are different issues around the discount rate and whiplash. The measures on whiplash in the Prisons and Courts Bill should reduce insurance premiums by, on average, £40. The issue about the discount rate is very different: it is an independent decision that the Lord Chancellor has to make. I am saying that we need to review the way that decision is made, and I will be bringing forward a consultation on that very shortly.

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