New research from LV= shows that the legal profession has seen a dramatic increase in the number of people attempting to claim compensation from exaggerated or invented injuries.
57% of solicitors have noticed an increase in the number of prospective clients faking their injuries in order to make a claim in the past 10 years. 40% have reported a surge in spurious cases since the recession began.
Among solicitors who have encountered suspect personal injury claims, 52% say the claims are most likely to involve a car accident, with whiplash the most frequently exaggerated injury (46% of all exaggerated claims). Post-traumatic stress was the next most commonly ‘made-up’ injury (21%) followed by strained muscles (10%).
89% of solicitors feel that the ‘blame culture’ associated with personal injury claims has been exacerbated by the introduction of the ‘no win no fee’ arrangement, also know as the ‘Conditional Fee Agreements’ system.
The LV= research found that over six in 10 legal professionals (63%) believe that TV advertising of these kinds of services is one of the key reasons for the increase in people reporting false personal injury claims. The other reasons cited were people thinking it’s an easy way to make money (70%), an increased awareness of the availability of compensation (62%), and the need to hold someone else responsible (49%) if they had been in an accident.
Asim Butt, a partner from Keoghs LLP, a law firm specialising in the investigation and handling of suspected fraudulent personal injury claims on behalf of insurance companies, said: “The research by LV= supports the experience within our fraud unit that some types of insurance fraud are now reaching epidemic proportions. Our legal system is intended to ensure that fair compensation is provided to those who genuinely suffer injury or loss as a result of an accident. It is not there to be hijacked by those who wish to abuse the system by pursuing false
