Couple face High Court hearing over car 'lies'

Lord Justice Moses and Mr Justice Burnett granted permission to Acromas to take legal action against Graham and Susan Loveday, from Port Talbot, South Wales,.

Mr Justice Burnett said: "I am satisfied that the case against them is a strong one – though that is not to say they (the Lovedays) will not have an answer to it."

The case at London's High Court is the first following a groundbreaking ruling by the Divisional Court last July which opened the way for insurers to bring contempt proceedings.

Insurance companies claim insurance fraud is now endemic, and legal action is necessary to act as a deterrent.

Yesterday's proceedings were launched by Acromas (formerly known as Saga) and Edward Nield, a motorist insured by the company who was involved in a road traffic accident with a vehicle driven by Mr Loveday in April 2006.

Mr Justice Burnett said Mr Loveday sued Mr Nield for compensation and it was suggested by Mr Nield and his insurers that Mr Loveday, supported by his wife, provided false statements and fabricated the seriousness of a back injury.