Compensation ban on whiplash cheats

[scottish]

http://www.confused.com/car-insuranc...hiplash-cheats

The government has stepped up its battle against the whiplash cheats which cost honest motorists millions of pounds a year in higher insurance premiums.

Ministers are promising to withhold all compensation payments from anyone found to have exaggerated or invented a personal injury claim following a road accident.

Ongoing battle
This means that cheats will not get a penny even if they have suffered genuine injuries.

The proposal is the latest step in an ongoing battle against the rising cost of personal injury compensation.

Last year, the Association of British Insurers (ABI) reported that payouts for whiplash injuries had reached £2 billion a year in the UK.

The organisation says that insurers detected almost 60,000 bogus or exaggerated motor insurance claims in 2013.

Victims ‘encouraged to overstate injuries’
The ABI blames lawyers and claims-management firms which encouraged accident victims to overstate the nature of their injuries in order to win more compensation.

The coalition has already clamped down on these practices with a series of measures, such as banning no-win, no-fee solicitors from doubling their fees if they win in court, and introducing tougher new regulations for claims-management companies.

But now the Ministry of Justice says it wants courts to throw out any claim for compensation where the claimant is found to have been "fundamentally dishonest".

Justice secretary Chris Grayling says: "Insurance premiums have fallen by record amounts over the past year as we have turned the tide on the compensation culture but there is more to do.

No more cash inducements
"We are continuing to go after the fraudsters who force up costs for honest drivers."

The MoJ also wants to ban law firms from offering accident victims inducements such as cash and iPads.

ABI director general Otto Thoresen says: "These changes are a very positive development for the vast majority of honest insurance customers who end up paying for the fraud of the minority.

"We applaud the decision to ban the distasteful advertising which offers cash or other inducements for personal injury claims. This only serves to reinforce to unscrupulous claimants that there is a compensation culture to exploit."

Fraudulent £650,000 claim
Insurer LV= said that the crackdown on exaggerated claims would have helped it avoid paying out any compensation to an accident victim who was subsequently jailed for lying about the extent of her injuries.

In 2005, accountant Minaxi Shah claimed more than £650,000 after being involved in an accident which she said left her unable to work and in need of care for up to eight hours a day.

However, investigators found Shah and her family had lied about the seriousness of her injuries and she was jailed in 2011.

LV= claims director Martin Milliner says: "Ms Shah was still awarded compensation for her genuine injuries despite the fact the claim was grossly exaggerated.

Are the new laws necessary?
"Once the new legislation is implemented to require courts to dispose of compensation claims where the claimant has been fundamentally dishonest, fraudsters like Ms Shah will see their entire claim thrown out."

Milliner adds: "In the past there were no consequences for the fraudsters who exaggerated or invented injuries in order to claim compensation.

"This new legislation fundamentally changes the game and will help put an end to this mentality whereby a claimant had nothing to lose by inflating a claim."

But Jeanette Miller, senior partner at JS Miller Solicitors, believes that new laws may not be necessary.

"I think there is sufficient protection already in place," she says

"Claims are dealt with on a case-by-case basis by judges and they already reduce awards if there is an element of exaggeration. Insurers also have the option of contempt proceedings where necessary.

"I don’t believe further intervention is needed and will only feed the ‘all claimants are frauds’ ethos."

Finally.

And I agree with the 'encouraged to overstate injuries' section as when I first had a car crash I had idiots calling for two years asking if I even felt uncomfortable during it I could claim up to 2k..

[Sian]

I completely agree, too many people try to cheat it when accidents happen. They're never nice to be in but they shouldn't be exploited, well i guess I should technically say; allowed to be exploited.

[scottish]

I completely agree, too many people try to cheat it when accidents happen. They're never nice to be in but they shouldn't be exploited, well I should, allowed to be exploited.

well I should, allowed to be exploited.

Each to their own.

But I agree it's taking the piss how many false claims are made or how many companies phone people encouraging them to make crap claims.

[The Don]

Definitely good news, it's amazing how people think it's acceptable to make fake claims. Whilst stopped in my car (indicating to turn into a petrol station) another guy drove into the back of my at roughly 30mph. Everybody I knew said I should fake a whiplash claim to get some money from it even though I was unscathed.

[scottish]

Definitely good news, it's amazing how people think it's acceptable to make fake claims. Whilst stopped in my car (indicating to turn into a petrol station) another guy drove into the back of my at roughly 30mph. Everybody I knew said I should fake a whiplash claim to get some money from it even though I was unscathed.

Did you not get constant phone calls?

Some old guy hit me in the side when I was going right, for 2 years I constantly had phone calls from different 'claims management' telling me even if I felt the slightest discomfort I could claim up to £2,000 and it was annoying as ****. Finally they closed my claim after 2 years so no-one phoned since.

[The Don]

Did you not get constant phone calls?

Some old guy hit me in the side when I was going right, for 2 years I constantly had phone calls from different 'claims management' telling me even if I felt the slightest discomfort I could claim up to £2,000 and it was annoying as ****. Finally they closed my claim after 2 years so no-one phoned since.

Nope, not a single one. Strange that you had loads, did you sign up to any websites or put your details anywhere looking for information about compensation? Not sure how else they would get your details to be able to hound you like that.

[scottish]

Nope, it was the insurance company that sold it apparently.

[The Don]

Nope, it was the insurance company that sold it apparently.

That's bad, it should be illegal for them to use your details to contact you about compensation unless you contact them about it.

[scottish]

Yeah I know and everyone of them that phoned I asked them to remove my info then another company would phone the following day, so god knows how many they sold it to.

[Hannah]

Finally - this should hopefully put a stop to the Eastern Europeans that signal to let others go ahead and then deliberately go ahead and claim on it. Like, they literally let people at give way lines go and then go ahead and cause a minor accident so that the one who was going from their signal is 'in the wrong.'

I also know of far too many people who have exaggerated over injuries to get money. The stupid things people will do.