Tackling Insurance Fraud

18 September 2014

Tackling Insurance Fraud
Insurance Fraud was discussed in a House of Commons Debate 9th September 2014. The Under - Secretary for Justice stated that he Government were committed to tackling insurance fraud. He stated that lawyers would be banned from offering inducements in personal injury claims and legislation would be passed to penalise fundamentally dishonest claimants. The Government were consulting on a requirement for lawyers to undertake previous claims checks on whiplash claimants, to combat fraud at source .It was mentioned in the debate that that insurance fraud and exaggerated claims cost some £2.1 billion last year, with motor insurance alone costing about £811 million. Ultimately it was acknowledged that it is not the insurance companies that pay out, but the consumers, who pay for it through higher insurance bills. 

Due to the fact that honest drivers are having to pay higher premiums because of abuses, especially in whiplash claims, the Government have put in place measures to deter unnecessary speculative and exaggerated claims, while ensuring that genuine claimants can come forward and have proper redress.

In the first phase of these measures, which will start next month, there will be fixed costs of £180 for medical reports, which in the past had been as high as £700.Jim Shannon (Strangford) (DUP) asked whether it is it not time that insurance companies exchanged ideas and ensured that they are forensically competent in dealing with fraud. The exchange of ideas may be happening, and the government seem intent on encouraging it to happen more.


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