February 2016 saw the first ‘fundamentally dishonest’ ruling made in relation to a noise induced hearing loss [NIHL] claim. A new precedent was set and the insurer involved was able to enforce a costs order against the claimant.
Investigations had demonstrated that the claimant was supplied with protective equipment throughout his employment, contrary to his claims. The case was dismissed, but it required an appeal hearing to secure the ‘fundamentally dishonest’ ruling and removal of qualified one-way cost shifting for the claimant.
The significance of this ruling can be appreciated when looking at the scale and costs of NIHL claims to the industry. There was an increase of 189% in NIHL claims notified between 2011 and 2014 and in 2014 alone, those claims were estimated to cost the industry £360M. It is widely accepted that the increased volume of NIHL claims is a result of the shift in focus of claims management companies and professionals who are looking to replace revenue lost from pursuing RTA whiplash claims following regulatory change.
The cost for the industry was estimated at around £360M. It is widely accepted that the increased volume of NIHL claims is a result of the shift in focus of claims management companies and professionals who are looking to replace revenue lost from pursuing RTA whiplash claims following regulatory change The ABI and the industry are seeking regulatory change to improve this challenging situation. But in the meantime, what can insurers do to detect fraudulent NHIL claims?
