Fake claims rise during recession

As many as 40 per cent of solicitors have seen a surge in spurious claims since the recession began, a survey by insurance company LV= found.

More than half (52 per cent) of the false claims involve alleged car crashes, with claims for whiplash the most exaggerated injury.

In one case, a claimant said she had been run over by a bus when, in fact, she had merely fallen off a kerb.

Another person made a car accident claim even though they were not in the vehicle at the time.

Overall, 57 per cent of the solicitors polled said there had been a rise in exaggerated injuries in the last 10 years, with 89 per cent reckoning the "no win no fee" system had encouraged more people to make fraudulent claims.

After whiplash, the next most "made-up" injury was post-traumatic stress.

LV= technical claims director Martin Milliner said: "Genuine cases of personal injury where another person or company is at fault are certainly cause for compensation.

"However, drivers who invent or exaggerate their injuries to make a claim not only break the law but also push up the cost of car insurance premiums for all motorists."