Legal advisers HF and insurer Hastings Direct have triumphed in a case involving a fraudulent non-tariff injury claim, culminating in a judgment that not only exposed the claimant’s fundamental dishonesty but also mandated the claimant’s legal representative to either justify their non-payment of costs or to contribute towards them.
The litigation stemmed from an accident in April 2022, in which a vehicle insured by Hastings Direct collided with the claimant’s car. Despite the potential for injury from the crash, Hastings Direct had suspicions about the extent of the claimant’s alleged injuries, if any were suffered.
Firstly, a claim notification form (CNF) was submitted through the Ministry of Justice’s claims portal in June 2022, instead of via the Official Injury Claim portal. It was also noted that Hastings Direct received three CNFs on the same day, all pertaining to individuals in the claimant’s car with the same representation and claiming non-tariff injuries (NTIs), psychological distress, and whiplash – all claimed to be long-lasting less than two months post-accident.
As the case progressed to trial, the claimant’s credibility was further undermined by inconsistencies regarding medical consultations and a denial of previous knee issues, despite medical records indicating otherwise. The claimant’s solicitors also resisted including both the CNFs and a statement from HF’s intelligence analyst in the trial documentation.
The judge allowed the defendant’s evidence in its entirety and expressed concern over the claimant’s CNF content, resulting in a verdict of fundamental dishonesty against the claimant, who was then ordered to cover the defendant’s legal expenses. The judge also expressed concern over the claimant’s solicitors’ conduct, requiring them to explain why they should not bear some of the costs.
“Dishonest NTI claims have been a huge problem for the insurance industry since the implementation of the whiplash reforms, with claimants now incentivised to claim for additional injuries to falsely inflate the potential value of their claim,” HF partner and counter fraud head Jared Mallinson said in an emailed release.
Kay Denyer, head of claims fraud at Hastings Direct, commented on the trend of increasing non-tariff injury claims in the aftermath of the whiplash reforms, emphasizing the company’s dual commitment to fair compensation for genuine accident victims and a firm stance against fraudsters exploiting the system.
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