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False personal injury claims bring terrible consequences

We are a claims management company and receive payment from our partnered law firms. If your free claim assessment is successful, you will be connected to a specialist law firm.

At The Compensation Experts, we have a great deal of experience handling cases for various personal injury compensation amounts. For example, we help victims of road traffic accidents. As such, motor accidents can cause tremendous amounts of damage, both physically and financially. Yet we also need to combat false personal injury claims.

This is a far too common occurrence that affects legitimate claims every day.

False personal injury claims are a major problem, particularly when it comes to legitimate personal injury compensation amounts awarded.

The scale of the false personal injury claim

However, there are unfortunately a small number of people faking injury claims each year. According to insurance giant Aviva, figures on insurance fraud they detected in 2021 show that there was an increase in the proportion of fraudulent claims across motor, home and liability. They go on to say that motor fraud accounted for up to 60% of all fraudulent claims they detected. Aviva advise that liability claims grew by 12% in 2021 and that a quarter of the bogus liability claims they reject are for slips, trips and falls 

The attitude of consumers to making false claims is another major cause for concern. For example, we commissioned a report into consumer attitudes towards the legal sector from the independent research agency Sapio. Moreover, this study reveals that 41% of respondents would file a false claim for financial gain.*

The effect of the false personal injury claim

Such false claims have a number of knock-on effects too. For example, consider how false whiplash claims affect insurance prices for car accidents. The Daily Telegraph says the cost of car insurance rose by £90 a year due mostly to this. In turn, these actions cost insurers £2 billion annually.

The story also reports that car insurance premiums may rise due to an increase in fraudulent tinnitus claims, “the new whiplash.”

Furthermore, false claims also hurt those making genuine personal injury compensation claims. This is because it arguably leads to a greater distrust by insurers of the claims they are receiving. This then means it can take longer for those with genuine claims to gain compensation for the injuries they have suffered.

In particular, there are investigation bodies for these matters.

Specialist police fraud units investigating insurance fraud, are currently investigating a rising number of possible fraud cases. We certainly support attempts to curb fraudulent claims, as these can reflect badly on our profession. However, if this adversely affects genuine claimants, we have to ask if the correct balance has been struck.

Finally, false claims are also affecting our profession and the wider legal services sector. The Ipsos MORI Veracity Index charts the public’s trust in various professions. Accordingly, only 54% of the UK population trusts what lawyers say. The legal profession ranks 13th for the trust of the 24 professions Ipsos MORI charts.

In summary, fraudulence hurts true victims

So, when the public at large trusts the legal profession less, the effects can be devastating for legitimate claimants. These are the vast majority of our no win no fee cases, so we find it critical to stamp out fraudulence.

Because those who have genuine personal injury claims may hesitate to seek legal advice prior to making a claim. Furthermore, that decreases their chances of successfully claiming for the level of compensation they should receive.

The consequences of a false personal injury claim

Admittedly, the possibility of making some extra money can be very alluring. But that money can never outweigh the negative consequences you’ll face if you are found out. That’s what makes a fraudulent personal injury claim so very damaging.

A report from the ABI includes several examples of what happens to people found guilty of making dishonest insurance claims. Of note, a man was jailed for making false medical claims worth £24,000. In another case, a man was jailed for four years, after he cloned the identity of a claims management company and arranged fake motor insurance claims, worth £26,000.     

Job Loss

Criminal convictions can also result in you losing your job. This is particularly true if you work in certain sectors, such as the financial services industry. To summarise, in so many industries, trust is paramount, and a fraud claim jeopardises your career in those industries. For instance, the social care sector, where you’re regularly in touch with vulnerable people.

Furthermore, a criminal record indicates you are unstable & risky for insurance companies. Therefore, if you have a criminal record, it may also mean that the cost of your personal insurance policies climbs significantly. In turn, that potentially makes it overly expensive for you to take out insurance policies covering your home, possessions and vehicle.

Insurance Blacklisting

Additionally, if you have a conviction from insurance fraud, insurance companies may blacklist you. That means you’ll be completely in the dark with insurance brands who refuse to cover you.

Consequently, these actions can affect you in a myriad of ways. When considering vehicle insurance, it is illegal to drive on British roads without at least third-party cover. Therefore, you’d no longer be able to drive legally in the UK without insurance. Similarly, if you can’t buy contents insurance, burglary of your home would leave you without coverage.

Finally, with a conviction for making a fraudulent claim, there’s also the cost of the action being taken against you. You’d have to:

  • Return the compensation pay in full.
  • Pay for your own legal representation.
  • Additionally, you’d be liable to cover the other side’s legal costs.
  • As well as incurring other costs like court-imposed victim surcharges.

In summary

In conclusion, it really doesn’t pay to try to make a false personal injury claim. Particularly as the IFB and IFED improve the detection, investigation and successful prosecution of fraud.

If you have a genuine claim though, please do not let the above stop you from seeking rightful compensation. The Compensation Experts use specialist legal firms with a proven track record in making successful personal injury compensation claims.

Every law firm we work with has a wealth of claims experience. So we’re able to help you get personal injury compensation amounts that correspond with your claim. After an initial, free and no-obligation consultation, we match you with a firm best capable of representing your case.

If you’re coping with any type of injury, work, driving or out in public, get help with your accident claim. Don’t hesitate to contact The Compensation Experts via the contact form on our website or by calling 0161 413 8765.

*That is, given the notion that they thought they could get away with making the fraudulent claim.