It’s no wonder that personal injury compensation claims for whiplash are soaring when claims management companies offer cash incentives to their staff to bring in cases.
A whistleblower recently told the Daily Mail that he and his colleagues are under considerable pressure to bring in as many personal injury claims as possible in return for a generous bonus. The employee said he was encouraged to chase accident ‘victims’ from as far back as three years ago and to repeatedly phone potential clients until they signed up.
According to a Mail investigation, claims management companies encourage people who have been involved in an RTA to make a false claim. The government has so far closed down 707 out of the 5,399 claims management companies in the UK because of malpractice.
The whistleblower has been working for one of these companies for over four years. He said the company set monthly targets and a £100 bonus would be paid to all ten members of his team if 100 personal injury victims were signed up over the course of a month.
He went on to explain that the team asked encouraged claimants to make further claims if they had been involved in other accidents during the past three years. These were likely to be false claims, but many medical practitioners gave claimants the benefit of the doubt.
Claims management companies get their clients from insurance brokers and garages in return for a referral fee. They then refer the cases to a no win no fee personal injury solicitor who could pay between £800 and £1,000 for each case.