In South Wales, 33-years-old Matthew Davies from Pontypridd, Rhondda Cynon Taff, said he was not involved with a car insurance fraud ring attempting to cash in on the UK’s lucrative personal injury compensation culture.
In the Cardiff Crown Court, six other individuals apart from Davies have made personal injury claims amounting to a total of £144,000 for car accident injuries. All claims were made between 2009 and 2011.
Davies, along with his friend Adam Fear, were part of those who were injured in a car accident and claimed personal injury compensation. Fear’s car collided with a BMW in a junction.
To show proof, Davies showed a guitar worth £1850 damaged during the ordeal.
Several attempts to earn personal injury compensation through exaggerated personal injury claims had forced UK’s Chancellor George Osborne to instead increase the small claims court’s compensation limit from £1000 to £5000. This helps decrease the pressure on motor accident insurance holders who are forced to pay £90 in addition due to the increasing numbers of exaggerated claims.
The Chancellor also intends to abolish all minor soft-tissue personal injury claims.
Some institutions, such as the Law Society and the Select Transport Committee, said the proposals did not guarantee proper legal representation for the UK’s most disadvantaged. They also said the limit of £5000 would push down the value non-life threatening but emotionally and psychologically damaging injuries such as facial scarring.