Gang of four found fundamentally dishonest for casualty liability claim

Posted: 11 June 2019
Four claimants have had their claims dismissed after being found fundamentally dishonest and ordered to pay back costs of £22,000.
The fraudulent activity became apparent after Allianz received a casualty liability claim from its insured, a motor repair shop. A vehicle technician at the repair shop replaced the brakes to the claimants’ vehicle, after carrying out a routine inspection and service. The claimants later reported that there was a problem with the brakes which caused the car wheels to lock, resulting in the car hitting a kerb and all passengers sustaining alleged personal injuries.
After Allianz’s insured had admitted a breach and dismissed the vehicle technician for his negligence, there were some concerns regarding the claimants’ credibility and the circumstances of the incident and the injuries.
"People think they can get away with exaggerating minor accidents in the hope of being compensated for their own financial gain without question."
Nick Kelsall, Fraud Manager, Allianz Insurance plc

An investigation by Allianz and DAC Beachcroft revealed that all four of the claimants’ GP records did not match up. Conflicting stories surrounding the speed of the accident, the injuries sustained and the way the vehicle came to a stop contradicted each other. One claimant chose not to disclose to their GP that their injury had been as a result of a vehicle accident as they didn’t want to appear 'weak' and the others contradicted what they had said previously in their witness statement.

At a two day trial, it was found that on balance of probability the accident did not happen as described by the four claimants. The claim was dismissed and a finding of fundamental dishonesty was ruled.

Nick Kelsall, fraud manager, Allianz Insurance said:

"It is very unusual to have more than one claimant on a casualty case and very rare for all four of them to have been found fundamentally dishonest. It goes to show that people think they can get away with exaggerating minor accidents in the hope of being compensated for their own financial gain without question.

"Working together with specialists such as DAC Beachcroft demonstrates our ongoing commitment to challenging and tackling insurance fraud."

The finding now means that Allianz can recover any costs back.

The information contained in this press release relates to Allianz Insurance plc. Allianz Insurance plc is one of the largest general insurers in the UK and part of the Allianz Group.

About Allianz Holdings plc

Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain.

About Allianz

The Allianz Group is one of the world's leading insurers and asset managers with more than 100 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing 790 billion euros on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage 1.7 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are amongst the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2021, over 150,000 employees achieved total revenues of 148.5 billion euros and an operating profit of 13.4 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below. 

Cautionary note regarding forward-looking statements

This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

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*Including non-consolidated entities with Allianz customers.

Charlotte Stretton
Media Relations Officer
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