Ten solicitors’ firms are being investigated with dozens of accident claims-handling companies for alleged insurance fraud.

The investigation, reported in the Solicitors’ Journaltoday, is being undertaken by the Insurance Fraud Bureau.

The alleged frauds involve law firms paying kickbacks to claims-handling companies for work. This is legal if it is open and transparent, but some of the claims turn out to be fraudulent.

Law firms may be unaware that the claims being made are fraudulent but could still be guilty, according to the Insurance Fraud Bureau. Sue Jones, head of unit at the bureau, is urging partners of law firms to keep accurate records of clients and cases referred to them by claims management firms.

“If you’ve paid a referral fee to a claims management company and you end up taking money into your client account from a fraudulent claim, then you could be facilitating that fraud.”

If insurers were saying consistently that they did not believe an accident took place, solicitors should review the claim, she said.

Explore Law

• Columnists

• Law Panel

• Law Reports

• Student Law

Times Recommends

• The best legal yarns this Christmas
• Legal school 'earned £1m by exploiting bar course'
• Axe may fall on 5,000 more City lawyers