Insurance Companies Fight Back Against Fraudulent Whiplash Claims

Whiplash injuries account for 80 per cent of all carThe claimant asked for a settlement of £6,500
accident claims in the UK, but the number of bogusfrom Admiral who agreed to pay only £548 for the
cases is on the increase according to Admiraldamage to his car. The matter therefore went to
Insurance.court where the judge dismissed the claimants’
Claims for whiplash cost the insurance industry up toversion of events and instead of awarding him a
£1.6 billion a year, with 250,000 people saying topayout of several thousand pounds, ordered his side
have been affected by it annually; 2,000 of these areto pay the legal costs bill of up to £40,000.
left with permanent disabilities.A spokesman for Admiral said, “We are obviously
There is no evidence of an injury immediately in mostconcerned about people faking whiplash, as the more
cases, yet victims are likely to suffer pain andmoney we pay out for bogus claims, the more
discomfort due to damage to the muscles andmoney genuine people have to pay for their
ligaments. This may not even show up on an X-rayinsurance. Whiplash is such a difficult thing to prove
which makes fraudulent claims for whiplash hard tothat someone hasn’t had.”
identify.Barclays Insurance Services carried out research into
Staging a car accident is the new way criminals arethe causes of whiplash and found that although there
trying to exploit the insurance system. This practiceare many cases of genuine injury, a majority of
involves people deliberately setting up a road smashdrivers and passengers in cars don’t help
in order for them to make a claim for injury andthemselves by not adjusting their headrests to help
damage to their vehicle. Witness statements willthem limit any impact suffered.
often be sought, but these onlookers are likely to beThis claim was backed up by figures released by the
in on the scam according to industry experts.motor industry’s research centre, Thatcham,
Admiral Insurance has recently been involved in suchwho indicate that 72 per cent of front seat
a court case with a driver claiming to have sufferedoccupants fail to do this.
whiplash after his car was hit from behind by anotherThe Association of British Insurers (ABI) announced
vehicle.the development of a new aid to help insurers’
The motorists seeking damages claimed to havespot people who had suffered potentially serious
been struck by a car at 35 to 40 miles per hour,neck injuries more quickly to enable them to receive
shunting him forward with severe force whichthe best medical care as soon as possible.
resulted in his injuries. Yet the driver of the other car,ABI said that although the majority of people
an Admiral customer, said although he did hit the carrecover from whiplash injuries relatively quickly, some
in front, he was travelling at only 2 to 3 miles percases can lead to ‘significant long term
hour and caused a small amount of damage to theproblems’ like disabling pain and depression.
bumper area.