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Rise in dodgy car insurance claims

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31/03/2010

The recent recession has given rise to a sharp hike in the number of spurious motor insurance claims filed.
According to research carried out by LV=  around 40% of solicitors have experienced a rise in the number of dodgy insurance claims.
And of those, more than half (52%) involved fake car accidents.
In one case, someone put in a car insurance claim following an accident even though they were not even in the vehicle at the time of the alleged accident.
Another person said she had been run over by a bus, when in fact, she had simply fallen off the side of the kerb.
Overall, 57% of the solicitors polled said there had been a rise in exaggerated injuries in the last 10 years, with 89% reckoning the “no win no fee” system had encouraged more people to make fraudulent claims.
After whiplash, the next most “made-up” injury was post-traumatic stress, followed by strained muscles.
LV= technical claims director Martin Milliner said: “Genuine cases of personal injury where another person or company is at fault are certainly cause for compensation.
“However, drivers who invent or exaggerate their injuries to make a claim not only break the law but also push up the cost of car insurance premiums for all motorists.”

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