The world of personal injury claims is never dull both from a regulatory point of view and individual cases going through the courts. We thought it would be interesting to take a look at some of the latest news and views from the world of personal injury claims.
Fraudster Charged With Contempt Of Court
A lady who jumped back into her vehicle AFTER it had been hit by a bus was found out by CCTV which eventually confirmed the correct timeline. CCTV cameras show that the lady in question was standing on the path when her vehicle was hit although this did not stop her putting forward a £3000 claim for injuries received. The incident took place in March 2016 although it was not until September that the fraud was uncovered and legal proceedings thrown out of court.
It turns out that the fraudster was able to dupe her solicitors and doctor about the extent of her “neck injury”. The incident was subsequently thrown out of court in February 2017 at which point the bus company Arriva began contempt of court proceedings. While the outcome was a six-month jail sentence suspended for 12 months the fraudster was ordered to pay an additional £9412 in costs on top of the £6750 she had already paid. While some would suggest this kind of fraud has “no victims” we have covered this issue many times, the company involved would have needed to divert money to cover a compensation payment/ increased insurance premiums not to mention the additional trauma for the driver of the bus in question.
Industry Expects U-turn On Ogden Rate
According to Insurance Business UK the Financial Times has suggested that Thursday, 3 August 2017 was going be the date on which the UK government announces the findings from a recent consultation regarding compensation payments for personal injury claims. Those who follow the industry will be aware that recently the UK government announced plans to reduce the Ogden rate (the rate used to calculate compensation payments) from 2.5% down to -0.75%. It is estimated that this change could cost the industry more than £3.5 billion and unfortunately it would likely be customers who would pay the price in the long term.
There are mixed feelings across the industry with the Association of British Insurers (ABI) suggesting the use of different short-term and long-term rates to calculate compensation payments. On the other hand the Association of Personal Injury Lawyers believes there is nothing wrong with the current system. Many people forget that the Ogden rate had remained unchanged for several years and whether or not the industry became complacent the government decided it was time for change.
It is also worth noting that we are currently operating in a low interest rate low inflation environment which can have a material impact upon the real value of long-term compensation payments.
Competition In The Personal Injury Claims Sector
While much of the focus in recent times has been upon fraudsters and scammers looking to extract as much compensation as possible from the system, the legal profession is now coming down hard on illegal activities by personal injury claims companies. So far unsubstantiated claims are going through the courts relating to an incident which happened in 2011. The claimant, Mr Dickson, was involved in a collision with a tractor that was insured by NFU Mutual Insurance Services Ltd. There were bona fide injuries sustained in this incident and a claim was processed in the correct manner.
The future court case revolves around allegations that a claim was also submitted on behalf of the victim by a company who did not have the authority to take action on their behalf. There are also unsubstantiated allegations of forging a medical report, a false compensation claim and engaing in acts with an aim to pervert the course of justice. Again, no ruling has been made on these claims and the case is currently going through the courts. However, it does highlight the immense competition in the personal injury claims market. These alleged irregularities were only discovered when the bona fide claim was submitted and the insurance company discovered a compensation payment had already been agreed with another party.
Whether or not this particular case is proven in the courts it does show that while competition is intense the legal profession will, where possible, prosecute those in the industry who fall short of the standards expected.
Is Common Sense Starting To Prevail?
Since time began there have often been major discrepancies between so-called common sense and the rule of law. The technicalities which follow the rule of law have seen prosecutions and cases dismissed to the dismay of the general public. However, there are signs that judges in Ireland are beginning to take common sense into consideration when hearing personal injury claims.
Over the last few weeks we have seen the withdrawal of a €180,000 car crash claim amid allegations of fraud. A €120,000 damages claim against a priest and an elderly lady refused amid allegations of “car tipping”. The judge in this particular case questioned why the alleged victim had visited “so many different solicitors” when looking to pursue his claims.
It will be interesting to see whether UK judges go down a similar path of using “common sense” while challenging the rule of law. There have also been many so-called spurious claims thrown out of court amid talk that not every accident should result in a personal injury claim and there is such a thing as human error. There is a chance that these “common sense” rulings could be challenged under the strict rule of law but it is refreshing to see the legal profession reviewing prosecutions on a case-by-case basis.
A Changing Profession
Even though the UK government will still receive criticism for its relatively slow reaction to the problem of fraudulent personal injury claims, at least some progress has been made. The reduction in legal aid, limiting of maximum payouts and the overhaul of the Ogden rate coupled with a greater appetite to hit back at the fraudsters is making headlines. The lady above who was prosecuted for contempt of court after a fraudulent personal injury claim escaped with a suspended six-month sentence but this was perhaps more of a warning shot across the bows for those with similar aspirations.
Even though the UK government has been very vocal in its pursuit of changes to the Ogden rate, from 2.5% down to -0.75%, who would bet against a U-turn when the result of the consultation period is published? Insurers may benefit from the uncertain and volatile political situation in the UK which has resulted in a severely weakened government which may have trouble pushing controversial legislation through the Houses of Parliament. However, while the pursuit of changes to the personal injury claims regulatory structure may be controversial, everyone is behind the pursuit of fraudulent claims and fraudulent activity within the industry.
