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60% of whiplash claims classed as fraudulent

60% of whiplash claims classed as fraudulent

Category: Car insurance

Updated: 17/06/2013
First Published: 17/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A study has revealed up to 60% of all whiplash claims received by insurers transpire to be either exaggerated or fraudulent.

Around 1,500 claims for whiplash are received by insurers every day, with numbers rising dramatically as claimants attempt to seek compensation payouts, even in the event of no injuries being sustained.

The car insurance provider, =LV, found over a quarter of people who had claimed for personal injury compensation as a result of a motor incident said they had inflated their story in an effort to receive more money.

A further 10% admitted to making up an entire story in order to receive a payout.

John O'Roarke, managing director of LV= car insurance, said: "Fraud has been seen as a 'victim-less' crime for far too long but the reality is that it drives up premiums for honest motorists.

"We support the Ministry of Justice's consultation on whiplash and its aims to create new legislation that will reduce the burden of these costs for honest motorists.

"Those tempted to make a claim when they do not have an injury should think again as making a fraudulent claim could lead to a hefty fine or prison sentence," he warned.


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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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