The personal injury sector is hitting back at claims made by some leading motor insurance policy providers that injury fraud is the root cause of increased premiums for policyholders and profit setbacks for the insurers. And it’s chosen now to round on the increasingly frequent accusations of not doing enough to stem the tide of fraudulent personal injury claims as one of the predominant voices of discontent has announced a 14% increase in profits within its motor insurance portfolio; seemingly despite these much-documented concerns.

A number of personal injury claims companies here in the UK have countered claims which have been led by Direct Line and other perceived scaremongering insurers, which have alluded to solicitors supposedly being unable to either identify or indeed cope with fraudulent whiplash claims by highlighting the chief protagonist’s latest profit figures, with some justifiably raising questions about inconsistencies.

Direct Line has also placed itself at the vanguard of the overriding support for the government’s calls to bring an end to the rights of those injured in road traffic accidents, which will be adversely affected by current proposals to hike up the small claims limit from £1,000 to £5,000. What’s more, the car insurer has quietly reduced its existing claims provision by 10% amid this recent fanfare.

Motor Insurers Urged to Separate Claim Fraud Facts from Fiction by Questioning Personal Injury Specialists Shouldering Blame for Rise in Whiplash Caseload

Despite offering arguably the most vocal support for the governments’ recent claims that fraudulent whiplash cases are seeing the motor insurance sector annually pick up a £2 billion bill, the proverbial cat seems to have got to the UK car insurance provider’s tongue when it comes to disclosing its material risks as part of its latest duty of reportage to the stock market and investors. Where, curiously (and according to various sources), the normally vociferous insurer fails to acknowledge motor insurance fraud worthy of a mention.

Reminding Direct Line that it was shouting about what it referred to as an ‘extreme compensation culture’ from the rooftops only a matter of weeks ago, some disgruntled personal injury claims companies are sensing a red herring, given the impressive financial results its posted do little to reflect such allegations on unfair play.

Some personal injury solicitors are going as far as to suggest that Direct Line is attempting to unsettle policyholders with its insistence that fraud is a major threat and excusing its 7.7% premium increase (for the last quarter of 2015, compared with the year before) as taking into account this very notion.

Detractors are also calling Direct Line out on the issue of its 20% rise in share values over the past 10 months, accusing them of selling investors this misleading whiplash fraud so that effectively its gaining support for any subsequent measures introduced on the wider front which will essentially deprive road traffic accident victims of legal cost funding; yet will conversely increase insurer’s profits as a by-product.

It’s this calculating approach – as they see it – which has prompted some personal injury lawyers to demand that motor insurers clear up such inconsistencies once and for all. Either by documenting details of a fraud crisis (as some are vocalising about) in their annual reports – and then explaining why in that case profits are healthy - or alternatively keeping their own counsel on the subject.

 

Call us free on
08000 10 60 66

CALL BACK

Latest news

Injury Resources

Full library of resources to learn more about the different types of personal injury and the claims process

Personal Injury Resources

 

 

 

 

Copyright © 2018 Cute Injury, All rights reserved. This site uses cookies to improve your browsing experience. By using this site you consent to our use of cookies.