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The Ministry of Justice has published new reforms intending to reduce insurance fraud. The reforms, to be introduced through the Criminal Justice and Courts Act 2015, are due to be implemented on the 13th April 2015.
The Act will introduce changes to court proceedings that aim to reduce fraudulent and exaggerated personal injury (PI) claims. From the implementation date, courts will be able to dismiss a PI case entirely if the claimant is found to have been deliberately dishonest about any part of the claim. For example, if a claimant exaggerates their loss of earnings caused by their injury, and the dishonesty can be proven, the claim can be put aside in full.
Where a case is dismissed, claimants will be ordered to pay back 100% of the legal costs incurred. It is hoped that this will act as a disincentive for fraudulent claimants.
For more information, please contact your Account Manager, or alternatively email [email protected]