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.”
Category: Car Insurance News, Insurance News
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