Personal Injury, Serious Injury & Clinical Negligence

Claimant’s legal representatives to help tackle fraudulent claims

The insurance industry is looking to reduce fraudulent claims for compensation by allowing legal representatives access to claimants’ claims history.

‘CUE PI’ will allow legal representatives to look into the claims history of all potential new clients who wish to pursue a claim for compensation.  It is hoped that this will identify ‘serial claimers’ or those possibly involved in fraudulent activities.

Although CUE PI is only a proposal at the moment it is likely to be implemented in the near future.

What is CUE?

The Claims and Underwriting Exchange (CUE) is a database of incidents reported to insurance companies, by policy holders (as required by their policy terms and conditions) which may or may not give rise to a claim. It holds details of these incidents for six years for Home and Motor claims and an unlimited time for Personal Injury Claims. CUE Home includes incidents reported against buildings and contents policies issued in the United Kingdom, Channel Islands and Isle of Man. CUE Motor includes incidents (other than windscreen breakage) reported against private car and motorcycle policies issued in the United Kingdom, Channel Islands and the Isle of Man. CUE Personal Injury includes incidents and industrial illness claims reported against personal and commercial policies issued in the United Kingdom, Channel Islands and Isle of Man.

Why was CUE set up?

The Claims and Underwriting Exchange was established in 1994 to help keep down premiums for insurance policyholders by preventing multiple claims fraud and the misrepresentation of claims histories.

Who participates in CUE?

Information is supplied to the CUE database by insurers, currently representing over 95% of the household market and 65% of the motor market. The database was extended to incorporate Personal Injury claims in 2002.

What is CUE PI?

CUE PI will give both insurers and solicitors access to claimants’ claims histories. The insurers will continue to access a shared database whilst solicitors will be able to search this information via a Web based interface. The entire process will be overseen by the Insurance Fraud Bureau. It is thought that this information could lead to a reduction of fraudulent claims. At present this information is only accessible by insurers, delegated authorities and compensators. Access to the Web based interface will come at a cost, however, it is not yet known whether this will be an annual fee or pay per search or indeed how much this is likely to be.

Is CUE PI necessary?

APIL (the Association of Personal Injury Lawyers) has conducted a surveys into whether solicitors would support the introduction of such a scheme.  87% of those who took part in the survey indicated that they would support the use of CUE PI.  The insurance industry hopes that a wider awareness of such a scheme will deter potential fraudsters from pursuing claims.