Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of January 2018
April 1, 2010

Dodgy insurance claims on the rise

by David Masters

Story link: Dodgy insurance claims on the rise

The number of dodgy insurance claims has increased significantly since the onset of the recession, pushing up the cost of insurance.

Research by LV= found around 40% of solicitors have experienced a rise in the number of spurious insurance claims.

Over half (52%) of the potentially fake claims involve car accidents.

Whiplash was the most commonly made up injury, followed by post-traumatic stress, and strained muscles.

One of the fake claims included someone making a car insurance claim even though they weren’t in the vehicle at the time of the alleged accident.

Another claimant said she had been run over by a bus when she had only fallen off the side of the curb.

Nearly six in ten (57%) of the solicitors polled said they have seen a rise in exaggerated injury claims over the past decade.

Nine in ten (89%) said the “no win no fee” system encourages people to make fraudulent claims.

Personal injury claims have pushed up the cost of insurance on a standard car from £200 to £300, LV= said.

“Genuine cases of personal injury where another person or company is at fault are certainly cause for compensation,” said Martin Milliner, LV= technical claims director.

“However, drivers who invent or exaggerate their injuries to make a claim not only break the law but also push up the cost of car insurance premiums for all motorists.”

 

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