A LEADING personal injury lawyer has claimed there is widespread abuse by the insurance industry of anti-fraud provisions in the Civil Liability Act 2004.
The Act was introduced by former minister for justice Michael McDowell and was aimed at stamping out fraudulent claims. It contains severe penalties for claimants who intentionally give false evidence in personal injury actions.
Section 26 provides that where a plaintiff in a personal injuries action knowingly gives false or misleading evidence or information, the court shall dismiss the plaintiff’s action unless the dismissal would result in an injustice.
“This provision has now been extended by insurance companies to cover the contents of pre-trial documentation, medical reports, statements and affidavits,” Liam Moloney, a personal injury solicitor from Naas, said yesterday. “Where there is even the most minor of inaccuracies, insurers are applying to judges to have cases dismissed.”
He said there had been a number of recent High Court judgments in personal injury claims where cases had been dismissed based on this section. There was now confusion in the courts as to what exactly the section covered.
“Unless you now disclose each and every medical treatment or accident going back to your childhood, you are at risk of having your case dismissed and an order for costs made against you,” Mr Moloney said. He said the section had been described by one High Court judge as “a draconian piece of legislation”.
“It should be amended immediately to make it clear what information must be disclosed to avoid injustice being done to genuine injury victims,” Mr Moloney said.
He also pointed out the legislation which provides for tough penalties on plaintiffs does not provide a similar sanction for defendants who give misleading evidence.