'Slip-and-Trip' Fraud Crackdown

Councils in Wales are to crack down on bogus personal injury claims against them in an effort to tackle rising costs, a BBC investigation has found.

Local authorities spent £20m in 2003 on road-related compensation, mostly on people's "slip-and-trip" injuries.

This figure is expected to rise to £30m annually within three years.

BBC Wales' current affairs programme Week In Week Out - broadcast on Wednesday - found councils believe up to 70% of claims may be fraudulent.

The episode features an insider from the claims industry who warns that the financial rewards on offer to those who "farm" or generate claims - whether on the street, by telephone or door-to-door - encourage fraud.

David (not his real name) used to work for a claims firm.

He told the programme: "The target then was five a day and if you didn't reach your target, very often your first line manager would be quite forceful on the phone.

"If someone had had a genuine accident but the scene of the accident wouldn't qualify to make it a claim, the rep would take them to a spot where it did, and that, as regards trips, went on quite often.

"I photographed a couple of claims which I was told to do, and it wasn't the scene of the accidents."

The programme heard from one claimant who has ended up with debts of more than £1,400, despite winning £1,000 compensation for repairs that had not been done on her home.

Her local authority successfully challenged the costs awarded against them in the case.

The programme also spoke to people caught up in a system from which solicitors and claims management companies are said to be benefiting by millions of pounds as they take most of the costs.

Dayton Griffiths, insurance and risk manager for Caerphilly Council, told the programme: "A genuine claim can come to us which would be valued at possibly £2,000 for a broken leg or arm.

"But then the actual third party solicitor's costs, the claimant's costs, could be in the region of £10,000 to £12,000, and our costs in defending these claims can be up to £5,000.

"So you're talking about a considerable sum of money just for a claim payment of £2,000."

Not regulated

Bogus claimants are being warned to think twice before submitting fake claims. Local councils are signing up to a cross-border fraud line database which will help them identify suspicious claimants.

Claims "farmers", who canvas in town centres and cold-call on residents touting for claims, are being blamed for the trend.

Mr Griffiths said: "We estimate that possibly 70% of claims are fraudulent, either exaggerated in some way, the incident didn't occur or it could have been a sporting injury somewhere else, and they are attempting to claim against the local authority for a tripping accident on the highway."

Janet Paraskeva, chief executive of the Law Society, told the programme: "We've got a real concern about people who are called claims farmers, because they are not regulated in any way.

"Some of them are out there on the street cold-calling quite vulnerable people and persuading them they might have a claim against a personal injury.

"We're very worried because it makes consumers very vulnerable, but also because they're bringing solicitors into disrepute."

source: BBC News (Last Updated: Wednesday, 23 February, 2005)

View more articles in our news archive >>