Dodgy insurance claims costing motorists extra $75 a year

• New South Wales motorists are paying $75 a year more on their car insurance
• This is occurring as a dozen law firms make fraudelent car minor accident claims
• Police say this is push up the cost of annual compulsory third party insurance 

By Stephen Johnson For Daily Mail Australia

Published: 01:28 BST, 15 October 2017 | Updated: 02:03 BST, 15 October 2017

Motorists are unnecessarily paying an extra $75 a year on compulsory third-party insurance because of dodgy injury claims for minor accidents by a dozen law firms.

Lawyers are litigating over trivial accidents like a 5km/h scrape in a shopping centre car park.

This is leading to huge average payouts of $60,000 for baseless claims which in turn pushes up CTP insurance premiums by $75 a year in New South Wales, The Sunday Telegraph reports. 

Motorists are paying an extra $75 a year on compulsory third party insurance in NSW

Compulsory third party insurance bills are soaring because of dubious insurance claims

Police allege 22 law firms are submitting about half of the state’s 6,000 CTP claims a year, with 12 of those suspected of making ’embellished claims’.

‘Having a car accident is an unfortunate part of life but it shouldn’t be seen as a small lottery win,’ Fraud Squad Detective Chief Inspector David Christie told the newspaper.

The report said dubious lawyers are working with allied health professionals to sign off on fraudulent injury claims, including $10,000 paid out for the parents of a nine-month old baby who was asleep during a minor car accident. 

Lawyers are also keeping for themselves half of their clients CTP payouts.

During the past nine years, numerous CTP claims have been filed for minor injuries sustained in insignificant accidents, with lawyers claiming post traumatic stress.  

Police say a dozen law firms are making bogus claims based on ‘trauma’ for minor accidents

Read more at DailyMail.co.uk