Fraud, exaggeration and LVIs in personal injury claims
Produced in partnership with Andrew Wilson

The following PI & Clinical Negligence practice note produced in partnership with Andrew Wilson provides comprehensive and up to date legal information covering:

  • Fraud, exaggeration and LVIs in personal injury claims
  • Definitions
  • Fraud
  • Malingering
  • Types of fraudulent claims
  • Credit hire fraud
  • Case handling
  • Generally
  • Initial investigation
  • Pleading the defence
  • More...

Fraud, exaggeration and LVIs in personal injury claims



Defined in Derry v Peek as where it is shown that:

'a false representation has been made (1) knowingly, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false.'


Defined in DSM-IV V65.2 and the DSM-5 as:

'The intentional production of false or exaggerated physical or psychological signs or symptoms, motivated by external incentives…'

Note: malingering or conscious exaggeration is not to be confused with unconscious exaggeration, often referred to by doctors and lawyers as 'functional overlay'.

Types of fraudulent claims

Definitions and labels vary for the range of behaviour connected with road accident claims and giving rise to suspicion, but broadly the types are set out below.

  1. Deliberately staged accidents

    These accidents occur when the drivers and occupants of two (or sometimes more) vehicles deliberately collide with each other, with resulting claims for injuries by passengers and the 'innocent' driver. There may also be claims for car hire, storage and repairs.

    There is perhaps more scope for investigation of this type of incident than those referred to below if only because insurers will be looking for evidence of a relationship or connection between the individuals involved

  2. Induced accidents

    The claimant deliberately puts himself in a position or situation to be hit by an innocent motorist. This then facilitates a claim in respect of personal injury by the driver

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