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ABI comments on new government plans to crackdown on insurance fraud and remove bogus claims

Justice Secretary Chris Grayling has today announced a major crackdown on insurance fraudsters and dishonest claims as part of new measures to benefit honest motorists.

The new package of measures, which will reduce the amount insurers pay out unnecessarily on fraudulent claims and result in lower costs for honest customers, include:

  • Requiring courts to throw out compensation applications in full where the claimant has been fundamentally dishonest – to stop people who have had an accident from exploiting the system by making bogus claims or grossly exaggerating the extent of their injuries.
  • Plans to ban lawyers from encouraging people to make claims by offering them incentives like cash or iPads.
  • Reducing questionable whiplash claims by improving medical assessments, ensuring they are only conducted by independent accredited professionals, and setting fixed fees for medical reports this year.
  • Introducing new rules this year to restrict the practice of settling whiplash claims without confirmation of the claimant's injury.

Commenting on the measures announced today by the government, Otto Thoresen, ABI Director General, said:

"These changes are a very positive development for the vast majority of honest insurance customers who end up paying for the fraud of the minority.

"We applaud the decision to ban the distasteful advertising which offers cash or other inducements for personal injury claims. This only serves to reinforce to unscrupulous claimants that there is a compensation culture to exploit." 

For more information, read the full press release on the government website.


Last updated 01/07/2016