The world of personal injury claims has never been more active than over the last few months with an array of changes by the UK government taking centre stage. However, there have also been some interesting developments in other areas of the personal injury claims market which could have a material impact upon future activity.
Sale Of Confidential Customer Data
Five individuals in the UK, three of whom worked for insurance company Allianz, have been sentenced to an array of prison sentences and fined for selling confidential data. It is believed that more than 700 individual pieces of confidential data were passed to various personal injury claims management companies/ contacts in exchange for payments totalling £7000.
An investigation was carried out by the City of London Police Insurance Fraud Enforcement Department which revealed approaches to the three insurance company employees who were informed they would be paid to leak data. It was proved via various communication apps that the parties were in regular contact and the employees would simply take a screenshot of the customer data on their notepads and pass this to the criminal gangs. After various discussions a payment for the information would be agreed and the underlying customer cold called with what appeared to be bona fide information about a potential personal injury claim.
The leaking of private information via insurance companies and other connected parties has been a serious problem over the years. Thankfully the Internet and electronic trails have made it more difficult for the criminal gangs to continue their activities. However, many of these criminal gangs still feel that the potential rewards, in the form of commissions and expenses, far outweigh the risk of being caught.
US Ruling Impacts Irish Personal Injury Claims
A ruling by the US Supreme Court as reported by Irish Legal News has opened a very interesting avenue for Irish personal injury claims companies.
The case of Bristol-Myers Squibb Co. vs. Superior Court of California was recently heard in the US Supreme Court with a ruling that effectively prevents individuals from seeking compensation in the US unless the actual “harm” occurred there. The idea was simply to tackle the growing number of US company personal injury claims heard in US courts which have historically awarded higher levels of compensation than other countries around the world. However, a loophole could work in favour of the Irish personal injury claims market and lead to “thousands of cases” brought before the Irish courts.
The reason why Ireland is being singled out as a potential venue for personal injury claims against US companies is because so many multinationals have registered offices in Ireland – due to the favourable tax situation. Corporation tax in Ireland compares favourably to the vast majority of Western world countries and this has over the years led to a significant number of multinationals using this in their favour. Even though this court ruling has only just been announced there are already suggestions that individual claimants/ companies and US state authorities could work together, taking their cases to the Irish courts. Historically we know the kind of figures some US states have been seeking in personal injury claims and other such matters.
Experts in this particular area believe claimants from countries as far afield as Australia and New Zealand could seek to have their lawsuits heard in Ireland. The main issue is that the US courts have no jurisdiction over the Irish courts and with many multinationals registered in Ireland this could become an expensive loophole for US companies.
Prosecuting Fraudulent Claimants
If you look back over the personal injury claims market you will see much mention of fraudulent claims, investment by insurance companies to combat this issue but the prosecution of fraudulent claimants are often very few and far between. While many insurance companies have managed to cast doubt on what they see as fraudulent claims, the prosecution of those behind these fraudulent claims is a whole different ballgame. It is therefore interesting to see that the Irish authorities seem to be taking the lead in relation to perjury and fraudulent claims.
It has been recognised across the Irish legal profession that it is difficult to prove beyond reasonable doubt that a claimant knew what they were doing was fraudulent. Many have been coached by dubious personal injury claims management companies resulting in often flimsy evidence to back up their claims and muddy the waters. The Irish authorities are looking at introducing a “legal status” for any insurance claims form whereby misinformation and fraudulent claims would amount to perjury. While it would still be difficult to prove these fraudulent cases in the court, it would certainly give more power to the legal profession and insurance companies and perhaps make those pursing fraudulent claims think twice.
Recent Publicity
The last year has seen some major changes in the personal injury claims market with the introduction of new regulations, artificial intelligence helping to combat fraud and more claimants prosecuted where fraud has been proven. Even though the actual changes to law and investment in fraud prevention systems have and will continue to make a significant difference, in many ways it is the potential threat of prosecution and even jail which could prove the strongest deterrent.
We have also seen the prosecution of dubious claims management companies with allegations of fraud and misguidance of claimants. While these dubious claims management companies are extremely persuasive, dangling the monetary carrot in front of their customers, unfortunately for those caught up in fraudulent claims it is the individual who will ultimately pay the greatest price. Once they sign on that dotted line and provide “evidence” under the guidance of their advisers, in the eyes of the law they are as guilty, perhaps even guiltier, than the claims management companies.
Conclusion
At this moment in time the risk/ reward balance between fraudulent claims, and potential compensation amounts, and prosecution for fraud is still weighed in favour of the criminal gangs and fraudulent claimants. Laws have been tightened, new regulations have been introduced but as we touched on above, perhaps the greatest weapon is that of publicity.
The only danger is that bone fide personal injury claims are not pursued because of the negative publicity surrounding court cases. When we strip out the potentially large rewards, the fraudulent activity and the constant battle insurance companies have on their hands, we can see more clearly why personal injury claims were introduced in the first place. The simple fact is that history shows us there is no better way to make corporate entities “think again” than by hitting them in the pocket followed by a raft of negative publicity. It can take years to build up a brand name but only minutes to destroy it if involved in negligent activity claims resulting in personal injury payouts.
Many people automatically assume that personal injury claims are simply a means of extracting compensation from corporate entities (and individuals) but they play a far greater role than many people appreciate. Significant investment in safety in the workplace and recalibration of business strategies could potentially save thousands if not millions of pounds in compensation payments going forward.
Once companies are “shown the error of their ways” in the courts they tend to appreciate the issue of safety and training in the workplace just that little bit more.
