Accident and Compensation claims have taken the UK by storm over the last few years, so it is no surprise to hear of the latest insurance investigation into some of the businesses involved in handling those claims.
Ten solicitors firms and dozens of accident claims handling companies are being investigated by the Insurance Fraud Bureau following claims of alleged illegal payments.
The alleged fraud involves law firms paying ‘kickbacks’ to claims handling companies for bringing them work. The practise is widespread and legal if carried out through the proper channels and is shown in a transparent and open way.
However some of the claims processed turn out to be fraudulent, and while the law firms may be unaware of this they can still be charged and found guilty.
Sue Jones of The Insurance Fraud Bureau has urged the partners of law firms to keep accurate records of clients and cases referred to them by the claims companies.
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