In the disagreement over accident compensation, a well-known person has clearly questioned whether the changes in the personal injury sector will help to reduce fraud.
At the start of this year, the chair of the House of Commons Transport Committee had written to Justice Ministers raising her apprehensions about the outcomes of the proposed changes in personal injury claims sector which directly affects the insurance industry. This instigated a response from Lord Keen of Elie after the letter was issued.
The government has confirmed their actions to continue their rate change plan for soft tissue damages and the limit increase in small claims for road traffic accidents. The proposed date set to begin the new changes is sometime in October 2018.
Louise Ellman of the Transport Committee, where the group is prominent in commenting on insurance for motorists, is not convinced that the new measures set by the Ministry of Justice will combat fraud. She feels that the overall number of claims may well reduce but fraud cases are unlikely to be tackled properly as fraudster will change their tactics.
Accident Compensation Tactics
Imagine the person who makes false claims taking advantage of any rule and finds that the parameters have been changed. It is improbable to stop fraudulent claims, as the new rules can be the next set of goals for them to achieve to get their dishonest gains. If it means a little more work or time involved to create a more genuine claim, then it is highly plausible.
What this means for many people, whether directly or indirectly tangled, in the fraud market is that the method is shifted to exploit the changes in their affected techniques. It is this very problem that worries Ellman when the move towards the proposals takes force. She has suggested that a more focused approach should be taken in repairs for damages and treatments for injuries where there are many false claims being produced.
Ellman, further points out that injury claims worth less than the £5,000 limit may discourage people to claim and will risk losing their entitlement. This could lead to exploitation from immoral claims management companies who promise to win compensation, but leave victims with far less than expected.
The reply from Lord Keen states that the changes declared were the government’s initial stages of reorganising the whiplash injuries format with a further crackdown on fraudulent claims to be instigated at a later phase.