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Recent Exaggerated Injury Ruling Can Become a Game Changer

There is a wave of change occurring in the insurance claims sector due to new court rules in the UK regarding exaggerated injuries.  Insurance claims and premiums are on the decline in the UK and it’s just a matter of time before the U.S. follows suit.  The potential benefits to our current system are significant.  From the web site www.das.co.uk:


New court rules will mean that personal injury cases will be thrown out in their entirety if claimants exaggerate their injuries.

A scheme announced by justice secretary Chris Grayling will see new measures taken to cut down on fraudulent claims by ensuring that cases will be dismissed if claimants are found to have overstated the impact an accident has had on their health.

Before, those who exaggerated their injuries in an attempt to secure a larger payout could still receive the lesser amount of compensation they were legally entitled to.

There are concerns that this has led to a system in which claimants have nothing to lose by giving an overblown account of their injuries, a situation which the Government now hopes to tackle.

Moves will also be made to prevent lawyers from incentivizing potential claimants to use their services with offers of cash or high-end electronic devices.

Medical assessments for establishing the extent of injuries in whiplash claims will also be tightened up, with a new fee structure and stricter controls on who can administer the tests.

Legislation to enforce the new rules will be tabled by Grayling prior to the general election next year.

“We are making sure we do our bit to help drivers with the cost of running a car, and putting money back in their pockets,” said Grayling.

“Insurance premiums have fallen by record amounts over the past year as we have turned the tide on the compensation culture but there is more to do. We are continuing to go after the fraudsters who force up costs for honest drivers.”

The new rules will affect all kinds of injury claims, ranging from road accidents to ‘trips, slips and falls’.

The Government is also set to introduce new rules this year which will stop insurers from settling whiplash claims without confirming that the claimant has genuinely suffered an injury.

For the story visit: http://www.das.co.uk/the-monitor/2014/july/courts-to-throw-out-entire-claims-if-claimants-exaggerate-injuries

A recent industry estimate has insurance fraud costing Americans roughly $80 billion, a year.  This is a system that needs fixing.  How much more money would stay in our pockets for savings or for putting back into our economy in healthy ways?  A pleasant question to ponder!

This entry was posted on Thursday, July 17th, 2014 at 7:18 PM and is filed under blog, Featured, News & Information, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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