SRA warns solicitors over personal injury fraud

The notice has been issued following publication of a report by the Insurance Fraud Task Force in January, calling for more to be done to ensure solicitors were not involved in bogus insurance claims. The SRA has drawn up a list of areas where there may be concerns for solicitors dealing with personal injury work and is asking firms to make sure they are fully compliant.

These include:

• Cold calling

• Breaching the ban on referral fees

• Acting on instructions without client approval

• Paying damages to third parties

• Bringing claims without clients' knowledge

The SRA has also produced a series of case studies highlighting how these issues can arise in practice.

Paul Philip, SRA Chief Executive, said: "As we said in January, insurance fraud is a serious matter and we welcome the Task Force's report and its recommendations. We have made good progress on combating financial crime, but we know we have more to do.

"In particular, we want to remind solicitors of their responsibilities when conducting personal injury work. The consequences of failing to adhere to the Code of Conduct could be severe both for the client and to the profession.

"We will also be carrying out a comprehensive review of the personal injury market this year and that will contribute further to our understanding of this area of the market."

The warning notice can be found here.
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The SRA's response to the Insurance Fraud Task Force report can be found here.
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