Keoghs and LV= General Insurance (LV=) have successfully defended against a fraudulent claim in a street racing incident, saving more than £135,000 in court.
The case involved a claimant who was found to have engaged in a joint criminal enterprise, contributing to dangerous driving that resulted in significant vehicle damage and injury.
The incident occurred in September 2018 on a road subject to a High Court injunction against car-cruising, where the claimant, a passenger, alleged that he and the driver were merely testing the vehicle's brakes late at night.
However, the vehicle was being driven at high speeds in a known street racing hotspot, resulting in the car rolling over and the engine being ejected. The driver contested the presence of the claimant in the vehicle at the time of the accident.
Investigative efforts by Keoghs and LV= revealed the claimant's prior involvement in dangerous driving and street racing on the same road, including a conviction under an alias in 2017 and a related accident in 2020.
The claimant, a motor mechanic, had claimed for various damages, including soft tissue injuries and psychological effects diagnosed as PTSD, amounting to a total claim of £20,115.
During the trial, Judge Truman dismissed the claimant's case, citing fundamental dishonesty and the claimant's joint responsibility for the dangerous driving. The court ordered the claimant to pay LV='s legal costs, with an immediate £25k due on account.
“In this case neither party involved in the accident were credible, they had conflicting accounts and there were no witnesses,” Keoghs partner Matthew Ruck said. “The investigative work was crucial and we were able to discover, evidence and prove at trial, despite a name change, that the claimant had a history not only of street racing but doing so on the exact same road in question. Detailed cross examination at trial revealed the defects in both the claimant’s and the driver’s version of events resulting in a saving of over £130k which is a great result for all involved.”
Matt Crabtree, head of financial crime intelligence & investigation strategy at LV=, also noted the significance of the outcome.
“This is a fantastic result, and we’ve worked collaboratively with the team at Keoghs to achieve a great outcome against a claimant who was deliberately lying and trying to cheat the system,” he said. “Cases such as this only serve to drive up costs for our genuine customers, which is why we’re committed to defending the claims in Court where needed and ensuring those behind the frauds suffer the consequences.”
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