People seeking damages after accidents could see their compensation claims thrown out of court if they exaggerate their injuries.
A new scheme announced by Justice Secretary Chris Grayling will require courts to throw out compensation claims if the victim is found to have lied about their injuries to get more cash.
The scheme, part of new plans to tackle so-called ‘cash-for-crash’ scams, has been welcomed by the insurance industry which loses millions annually to ‘no-win, no-fee’ claims.
Under the old system, claimants who were found to have exaggerated their injuries would still get compensation for their actual injuries.
But the new plans will mean that anyone found to have exaggerated their case will lose every penny.
Whiplash injuries will also have to be fully investigated before any payout, to prevent fake claims after minor prangs.
Martin Milliner, claims director at LV, said: “If a fraudster risks losing their entire pay-out due to exaggeration, this will level the playing field for insurers and claimants and speed up justice for those with genuine injuries.”
Mr Grayling announced he also plans to ban ‘no win, no fee’ lawyers offering incentives like cash or iPads to encourage people to claim compensation.
He said: “Insurance premiums have fallen by record amounts over the past year as we have turned the tide on the compensation culture but there is more to do.
“We are continuing to go after the fraudsters who force up costs for honest drivers.”
