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Daily Insurance Industry News
Thursday 16th of August 2018
December 10, 2010

Surge in false personal injury claims

by Richard Kilner

Story link: Surge in false personal injury claims

The personal injury advertising and marketing industry has helped encourage a surge in unfair compensation claims, sought by individuals who embellish or invent the details of their claims.

LV= commissioned research in which 93% of GPs stated that they had seen a patient in the last two years who had exaggerated an injury with a view to claiming compensation.

In addition, 79% of GPs have seen a patient whom they believe was making up an injury entirely.

There has been a corresponding surge in personal injury lawyer advertisements on television, and 17% of those who make such a claim do so largely because of seeing such an advert.

Since January 2009 £80m has been spent on this brand of advertising.

The insurance sector is also affected, with 87 pence paid in legal costs for every £1 of compensation, driving up premiums, and the NHS spends £8m per year on consultations assessing such injuries.

Government adviser Lord Young is keen to restrict the advertising of personal injury lawyers and reform the way the profession operates.

Martin Milliner, director of technical claims at LV=, explained that whilst genuine injuries may indeed warrant compensation, those claiming falsely are costing the NHS valuable time and resources.

In November the Association of Personal Injury Lawyers (APIL) warned that Ken Clarke’s proposals to restrict “no win, no fee” would disproportionately affect the weakest in society.

 

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