Fraudulent insurance claim leading to more

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Mon 28 Dec 2015 16:51
Fraudulent insurance claim leading to more - dougal88

I have a friend who was contacted by his insurance company due to a claim that he was in an accident and wrote off someone's car. My friend was not in an accident and so following investigation his insurance company rejected the claim. I've seen the photos of both cars, my friends car has not been in an accident, and the other car is an old banger with a bumper literally falling off. It might be worth mentioning the party making the accusation consist of three men who all have suffered from whiplash.

Now it appears that the fraudulent party are now going after my friend directly, he got the following corespondence from his insurance company:

We have reached the stage in the claim where the third party solicitors are now looking to commence legal proceedings against you, and have requested your details in order to commence the same (which they are entitled to for this reason)

They have made an allegation that you were involved in the incident and have given false details at the scene.

My friend is obviously terrified having never been involved in legal proceedings other than buying a house. Can anyone layout what he can expect? I've told him he's got nothing to worry about as this false claim has been thrown out by the insurance company and you can't prove something that never happened. Practically can he refuse to cooperate as it is a waste of time? Is he obliged to do anything? Is it time to get a solicitor or will the insurance company assist as they are involved?

Thanks for any advice. Any questions I'll relay and get back to you.

Edited by dougal88 on 28/12/2015 at 16:52

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Mon 28 Dec 2015 19:33
Fraudulent insurance claim leading to more - galileo

Clearly an attempt at fraud, which is a criminal offence, so should be raported to the police ASAP.

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Mon 28 Dec 2015 22:11
Fraudulent insurance claim leading to more - dougal88

Wouldn't the insurance company report possible fraud? Or is this down to individuals?

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Mon 28 Dec 2015 19:35
Fraudulent insurance claim leading to more - RobJP

He needs a solicitor (which he HAS to accept he will be responsible for the costs of).

However, in his very first letter to the other party (sent by the solicitor) he needs to make it VERY clear to the other solicitor that this claim is fraudulent, and that he wil pursue the opposing clients through the courts for his costs.

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Mon 28 Dec 2015 20:11
Fraudulent insurance claim leading to more - Bromptonaut

In any claim, I'm not getting involved in whether or not this one is fraud, if negotiation fails the next step is for the party alledging loss/injury to issue a summons in the County Court (High Court writ if mucho money involved).

Ignoring or refusing to co-operate is not an option. The court is used to this and procedure allows the claimant to get 'judgement by default' against defendants who bin correspondence.

As this arises from a motor claim I'd expect your friend's insurers to continue to act, via solicitors if necessary. He needs to have a chat with them about what happens next. I'd expect though that, at most he should acknowledge service and pass the paperwork to insurers to deal with. He may though need to keep them on their toes.

If he's worried it might be worth a word with his local Citizens Advice for some reassurance.

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Mon 28 Dec 2015 22:08
Fraudulent insurance claim leading to more - dougal88

As this arises from a motor claim I'd expect your friend's insurers to continue to act, via solicitors if necessary. He needs to have a chat with them about what happens next. I'd expect though that, at most he should acknowledge service and pass the paperwork to insurers to deal with.

I think this the path to follow. Part of the premium covers legal costs so they will act on his behalf and he should make himself available. He's calling them tomorrow for advice.

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Mon 28 Dec 2015 20:27
Fraudulent insurance claim leading to more - FP

"We have reached the stage in the claim where the third party solicitors are now looking to commence legal proceedings against you, and have requested your details..."

I read this as a deliberate attempt to frighten the recipient. If the third party solicitors are "looking to commence" it doesn't sound as if much is actually happening.

I would wait and see what happens next before taking any action myself. If the next thing is merely a letter from the third party solicitors I would still wait.

As has been pointed out above, if and when court papers arrive then action is a necessity and the other advice given needs to be taken on board.

Edited by FP on 28/12/2015 at 20:28

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Mon 28 Dec 2015 22:10
Fraudulent insurance claim leading to more - dougal88

Sounds pretty straight forward, it could all be matter of course to be followed. He could end up not hearing another word after giving the insurance company the go ahead to deal with the case. Thanks for your thoughts.

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Wed 6 Jan 2016 02:26
Fraudulent insurance claim leading to more - 1litregolfeater

Tell them you'll report them to King Saud

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Fri 8 Jan 2016 20:44
Fraudulent insurance claim leading to more - Robert J.
I think FP has called it right. I had a similar experience many years ago; a claim that I had been involved in an accident in a place I had never been to. The other party threatened to start proceedings and then never heard another thing. The only problem was that I lost my NCD while the 'claim' was investigated. I would reassure the OP's friend that he should not get too concerned.
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Fri 8 Jan 2016 22:06
Fraudulent insurance claim leading to more - FP

"I think FP has called it right."

Well, we'll see. It's too early to be sure, but give it a few more weeks.

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