In the fact of the incoming Civil Liability Bill, we expect
Claimants to adjust their tactics to increase the value of
claims.
The Civil Liability Bill is intended to fight fraud by reducing
the financial rewards which have followed whiplash claims. We
expect Claimants to adjust their tactics to increase the value of
claims, including adding on injuries that sit outside the
definition of whiplash contained in the Bill in order to escape the
tariff system introduced.
On that basis, we predict the most significant problem facing
insurers in the fraud arena is likely to be claims inflation
through either exaggeration or layering. That exaggeration is
likely to be rooted in not just the inflation of special damages
(vehicle repair costs / physio and CBT) but also in an increase in
general damages.
