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Fraudulent injury claims compound problems for UK economy

Luke Johnson, Chairman of Risk Capital Partners and former head of Channel 4, draws an interesting “direct correlation between the number of accident claims and the state of the economy’.

Writing in the latest issue of Management Today, Luke argues that ‘it seems the tougher the recession, the more people appear to hurt themselves, and thus feel the need to sue’.

To combat a fake-injury claims industry which is thought to cost business and government around £3bn a year, Luke proposes that ‘anyone who submits a fraudulent claim should be made an example of, in both civil and criminal terms.’

The UK’s compensation culture remains remains minor however in comparison to the United States, where estimates attribute as much as 10% of the total healthcare spending in the United States to fraud (about $115 billion annually).

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