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I agree the £400 should be repaid by the claimant. I hope this is pursued and I'd love to know what proportion of claims were fraudulent. If they were obviously so this may trigger a cull of those firms pushing the claims.

Anon 4:46 you're quite right. It also beggars belief why insurers would just pay up without any investigation, and make pre-med offers etc.

All that aside, it'll be interesting to see how this unfolds.