Fraudulent Claims Result In Custodial Sentences

Contempt proceedings were brought on behalf of Admiral Insurance following the failed attempt by the three Defendants to make fraudulent insurance claims in relation to a staged road traffic accident.

The decision has important ramifications for those involved in fraudulent claims. Whilst the first and third Defendants had filed witness statements directly refuting Admiral's allegations of fraudulent behaviour, the second Defendant did not.

In addition, all three Defendants had abandoned their original claims before going to a trial.

Whilst the failure by the second Defendant to file a witness statement mitigated against the offence the Court still handed down custodial sentences to all three Defendants.

Historically, the vast majority of committal proceedings have involved claimants who went to trial and lied in the face of the Court. In this instance, none of the three Defendants went that far and all of them purged their contempt prior to the final hearing. This decision suggests that a claimant who knowingly pursues (and issues) a fraudulent claim is likely to receive a custodial sentence.

Background

The respondents had been involved in an alleged...