Insurance fraudster will lose house for legal costs
Fight against fraud hits new heights
14 July 2004
An insurance fraudster will be forced to sell his home to pay for huge legal bills following a dramatic court decision.
MMA Insurance plc, one of the UK’s largest insurance companies, and Lancashire insurance defendant law firm, MWR Solicitors, have struck a huge blow for the insurance industry.
Having identified the fraudulent personal injury claim of Luton-based Mohammed Nisar in 2003, the firms not only got the case discontinued but recently managed to obtain a second charge on Nisor’s house to cover the legal costs, in excess of £20,000.
However, in a remarkable twist this week, Luton County Court granted MWR Solicitors an order for sale, giving lawyers the go-ahead to put Mr Nisar’s house on the market.
The sale proceeds will be used to pay off Mr Nisar’s mortgage with Abbey National and MWR’s legal fees, with the remaining monies going to Nisar.
According to Peter Meloy, managing partner of MWR, the decision sends out a clear message: “This is a significant development in the industry’s stance against fraud. We are overjoyed with the decision which fully vindicates MMA’s decision to pursue the case.
“Insurance companies are now realising that pursuing fraudulent claims is not about throwing good money after bad.
“This is a long and ongoing fight which will help deter fraudulent claims and halt the huge rise in insurance premiums.”
Notes to editors
Mohammad Nisar’s personal injury claim surrounded a three-car accident in Luton and also involved separate claims from the drivers and passengers of the other vehicles.
Engineering reports commissioned by MWR Solicitors in Preston revealed that the evidence didn’t coincide with the alleged damage.
The law firm instructed a private investigator to pursue suspicions of fraud in connection with the driver of the third vehicle, which revealed he had two existing claims for personal.
MWR liaised with the solicitors involved in the two other cases and managed to transfer them to Luton County Court so all three could be heard by the same judge.
No further action was taken again the other fraudulent claimers, who were of limited means.
