Fake injury claims hurt honest drivers
THE cost of car insurance is being driven higher by an increase in fake compensation claims, new research shows.
More than half of solicitors have reported an increase in the number of prospective clients faking their injuries to
make a claim in the past 10 years, according to insurer LV.
Four in 10 also reported a surge in spurious cases since the recession began.
“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,” said Martin Milliner, technical claims director at LV.
The research showed that whiplash was the most frequently exaggerated injury. Post-traumatic stress was the next most commonly invented injury, followed by strained muscles.
The study showed a claimant saying she had been run over by a bus, although the police report showed that she had in fact fallen off a kerb.
Another reported someone attempting to make a claim as a result of a car accident — even though they admitted
they were not in the car at the time.
“Some types of insurance fraud are now reaching epidemic proportions,” said Asim Butt, partner at law firm Keoghs.
“Insurance fraud is an indirect tax on the public levied by dishonest people, and is an unacceptable feature of today’s society that needs to be addressed.”
