Injured people pay the price for insurance sector’s ‘hidden fraud’

Injured people pay the price for insurance sector's ‘hidden fraud’

Scott Whyte

The consequences for vulnerable people who are unable to shop around for personal injury insurance deals can be “devastating”, a lawyer has warned.

Scott Whyte, managing director of Watermans Solicitors, made the comments amid details of customers being undersold by insurers following a personal injury claim.

It comes as the Scottish government actuary has decided that the discount rate in Scotland should remain unchanged at -0.75 per cent.

Lawyers recently warned that the lower rate in Scotland can cause delays and lead to higher costs for Scottish taxpayers after the rate in England and Wales was changed to -0.25 per cent in July.

Mr Whyte said: “We have all heard the insurance industry talk, often and at length and without supporting evidence, about fraud. The real hidden fraud in the system is how some of the UK’s household names do everything they can to under settle personal injury claims.

“At Watermans, we have countless examples of cases where we have settled a case for significantly more than the defender’s insurance company were willing to offer. Just settlements require pursuers to have access to specialist legal advice and representation.

“The Scottish Parliament recently passed legislation introducing several provisions which will affect the amount of compensation people who are awarded compensation by the courts after suffering a personal injury receive, and how this is paid to them.

“This legislation will particularly affect those receiving significant amounts of compensation after suffering particularly serious and life-changing injuries. During the legislation’s passage through Parliament, it was personal injury representatives who argued that Scotland’s civil law should pay attention to the needs of people who have suffered the most serious of injuries. Representatives of the insurance industry argued against such a presumption.

“Injured people can’t afford to run the risk of being caught up in that culture. Proper, specialist legal representation delivers just results, and it is the personal injury legal sector which has argued for the interests of individuals who have suffered injury and loss, while the insurance sector has done the very opposite.”

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