Insurers plan in-depth look at personal injury claims fraud

Personal injury news roundup: 7 days ended 31 March 2015:

The insurance industry through its recently formed Insurance Fraud Taskforce says it has grand plans to look at the personal injury claims fraud issue in depth.

The new taskforce – it was put together in December of last year – released a preliminary report last week alongside the latest Budget. The insurer-led group says it’s got its eye on four select topics in order to keep things both manageable and focused; all in all it says it’s going to be looking at the role of fraud data, policyholder behaviour, fraud deterrents in the claims process and the impetus behind encouraging fraudulent claims in the first place. Both the British Insurance Brokers’ Association and the Association of British Insurers are on board with the project, agreeing to update their fraud prevention guidance by the end of the year.

The goal of the taskforce is of course to reduce fraud when it comes to things like accident claims. Whiplash claims are especially injurious to the insurance industry, thanks to it being exceedingly hard to disprove a diagnosis and that the evidence of whiplash consists mostly in subjective, hard-to-quantify ways. The idea being bandied about by the taskforce is that most of the whiplash fraud insurers are experiencing isn’t from ambulance chasing personal injury lawyers or claimants that are making up injuries out of whole cloth but instead individuals who might have ended up with a legitimate, though minor, injury and make the decision to exaggerate the extent of their pain and suffering in hopes of getting a bit more than they would have from a personal injury compensation award than they would otherwise.

Of course that’s not to say that organised fraud doesn’t play a role as well. We’ve all heard of those ‘crash for cash’ schemes where a ring of scammers get together to stage or cause accidents; it’s so widespread that sometimes even public transport bus drivers get in on the action, but it’s usually easy to spot because most criminals are, to put it mildly, bloody stupid and end up making it obvious that they’re trying to pull a fast one.

Still, it remains to be seen what kinds of solutions this taskforce is going to be able to come up with. Honestly if you ask me I think that as soon as they plug a few holes in the dam another dozen will spring up.

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