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False insurance claimants risk imprisonment
The High Court has confirmed that false claimants in staged Road Traffic Accidents risk imprisonment (Maximum 2 years) for contempt in any hearings before the County Court where bogus claimants make false statements or fabricate evidence.
In a conjoined judgement handed down by the Queens Bench Division of the High Court (A Barnes T/A Pool Motors v Seabrook and South Wales Fire & Rescue Service v Smith) the High Court declared that if knowingly false declarations were made in such a claim then it was open to the County Court to use its' common law powers by treating the false declarations as a contempt of court.
In the full judgement (available from the above link and from the taxi licensing caselaw page of the members area of this site, the judgement raises a warning to any licensed person who considers making false insurance claims that they could result not in a "nice little earner" but imprisoned for up to two years and liable for the costs of the insurance company defending the bogus claim.
Defendant Insurance Companies can now clearly petition for a High Court Committal in such cases of clear contempt. Bogus claimants should watch out- the cells may well be waiting and ready!
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