Fraudulent Personal Injury Claims

Fraudulent personal injury claims are on the increase and we need to work together to reduce them. The Association of British Insurers calculates there was a 34% increase in dishonest motor insurance claims between 2012 and 2013, despite falling accident rates over the same period. Other areas of claim, including public and employers liability claims, are also said to be increasing in volume overall, producing correspondingly greater numbers of dishonest claims. The Government has repeatedly made its position about the claims culture, and its support for the insurance industry, very clear. It recognises that "fraudulent, exaggerated and unnecessary insurance claims place a significant financial burden on each and every motorist" (2013 Transport Select Committee Enquiry) this applies equally to all commercial and private individuals who have to pay insurance premiums to protect themselves against other types of risk. Now the Government has set its sights on road traffic accident "Whiplash" claims. This follows publication of a Whiplash Reform Programme by the Ministry of Justice ostensibly designed to improve the system for dealing with low-value whiplash claims. Earlier this year it introduced restrictions in fees chargeable by medical experts in such claims. The second phase of the programme, which has been in consultation in autumn 2014, focuses on the quality of the medical evidence (particularly the accreditation of experts) and data sharing to fight fraudulent claims. This has implications for all road traffic accident claims. We welcome the governments new litigation aimed at reducing fraudulent claims. In April 2014, following discussion between representatives from the Association of Personal Injury Lawyers (APIL), the Association of British Insurers (ABI), the Motor Accident Solicitors Society (MASS) and the Law Society agreement was reached to allow claimant representatives to undertake "previous claims" database checks on potential claimants before accepting their claims. Data sharing is a positive development for the claimant personal injury lawyer, and has been readily embraced by APIL. Although no system can hope to identify all dishonest or disreputable claimants, anything which helps level the playing field between claimant representatives and insurers is to be welcomed. The need for vigilance has never been as great as it is in this brave new post-reform world for personal injury claims. For further information please contact David Brown on 01142666 660 or email [email protected]