Best Insurance Fraud Lawyers in Stonehaven

About Insurance Fraud Law in Stonehaven, United Kingdom

Insurance fraud is any dishonest act intended to obtain a benefit from an insurer that a person is not entitled to. In and around Stonehaven in Aberdeenshire, cases are investigated by Police Scotland and private insurers, and prosecutions are brought by the Crown Office and Procurator Fiscal Service. Scots law governs criminal and civil aspects. Conduct can range from exaggerating genuine losses and non-disclosure on policy applications to staged accidents, fabricated thefts, arson for profit, fake personal injury claims, and organised fraud such as ghost broking. Even seemingly minor misstatements can have serious consequences, including criminal prosecution, loss of cover, recovery of paid sums, and placement on industry fraud databases.

Because Stonehaven falls within the Scottish legal system, the framework differs from England and Wales. Fraud is largely a common law crime in Scotland, supplemented by specific statutes. Insurers also rely on UK-wide consumer insurance statutes to decide whether a policy can be voided for misrepresentation or non-disclosure. If you live, work, or run a business in the Stonehaven area, understanding these rules is crucial before speaking to investigators or responding to an insurer.

Why You May Need a Lawyer

You may need a lawyer if you have received a letter alleging a fraudulent claim, been invited to a voluntary interview by Police Scotland, been arrested, or had property seized under a warrant. A solicitor can advise on your rights during police interviews, assess the strength of the evidence, and communicate with the Procurator Fiscal about potential charges or alternatives to prosecution. Early legal advice can also prevent unintentional self-incrimination.

Policyholders and claimants may need legal help when an insurer voids a policy or refuses a claim based on alleged misrepresentation or fraud. A solicitor can review proposal forms, call recordings, and claim paperwork to challenge an insurer’s decision or escalate to the Financial Ombudsman Service where appropriate. Businesses in sectors prone to claims, such as motor fleets, construction, retail, and hospitality, may need help responding to suspected staged incidents, preserving CCTV and telematics evidence, and engaging with both insurers and law enforcement.

Professionals and brokers may need representation if accused of fronting, ghost broking, or facilitating fraudulent applications. If you face restraint of assets or confiscation proceedings under the Proceeds of Crime Act, specialist advice is essential to protect your finances and manage disclosure of legitimate income and expenses.

Local Laws Overview

Criminal liability in Scotland arises primarily from the common law offence of fraud. Fraud involves making a false pretence that causes someone to act to their prejudice, such as paying a claim that is not due. Related common law offences include uttering a forged document, perjury if false evidence is given under oath, and attempting to pervert the course of justice. These offences can be prosecuted on a summary basis in the Sheriff Court or on indictment, including in the High Court for serious cases.

The Criminal Justice and Licensing Scotland Act 2010 creates statutory offences relevant to insurance fraud, including possessing articles for use in fraud and making or supplying articles for use in fraud. These provisions are often used where investigators find false identity documents, device cloning tools, or other items prepared for fraudulent claims.

Civil and regulatory rules also matter. For consumers, the Consumer Insurance Disclosure and Representations Act 2012 sets out duties when taking out insurance, including the obligation to take reasonable care not to make a misrepresentation. For non-consumer and business policies, the Insurance Act 2015 addresses fair presentation of risk, remedies for misrepresentation, and proportionate responses by insurers. An insurer may void a policy, reduce a claim, or apply different terms depending on whether a misrepresentation was careless or deliberate.

Data and information sharing in fraud investigations may involve Cifas entries and insurer counter-fraud networks, governed by the Data Protection Act 2018 and UK GDPR. If you are invited to an interview or contacted by an insurer’s fraud team, you have the right to seek legal advice before responding.

In Stonehaven and the wider Aberdeenshire area, investigations are handled by Police Scotland’s North East Division, with prosecutions by the local Procurator Fiscal. Cases are typically heard at the Sheriff Court serving the area, commonly in Aberdeen. There is usually no fixed limitation period for prosecuting serious common law fraud, although practical considerations and the availability of evidence will affect case decisions.

Penalties for insurance fraud vary by seriousness and court forum. They can include imprisonment, fines, compensation orders, and confiscation of criminal benefit under the Proceeds of Crime Act 2002. Separately, insurers may cancel cover, refuse future claims, and record suspected fraud on industry databases that can affect your ability to obtain insurance.

Frequently Asked Questions

What counts as insurance fraud in Scotland

Insurance fraud includes any dishonest conduct aimed at obtaining a policy, benefit, or payout you are not entitled to. Examples include exaggerating repair costs, inventing stolen items, staging or inducing collisions, concealing prior claims or convictions on an application, making multiple claims for the same loss, or submitting forged receipts. Both completed fraud and attempts can be criminal.

Is exaggerating a genuine claim illegal

Yes. Inflating a legitimate loss is still fraud. Even if part of the claim is genuine, knowingly overstating values or losses can lead to refusal of the entire claim, policy cancellation, recovery of any sums already paid, civil costs, and criminal prosecution.

Do English fraud laws apply in Stonehaven

No. The Fraud Act 2006 does not apply in Scotland. Insurance fraud in Stonehaven is dealt with under Scots common law and relevant Scottish statutes, while UK-wide civil insurance statutes such as the Consumer Insurance Disclosure and Representations Act 2012 and the Insurance Act 2015 do apply to policy issues.

Who investigates and prosecutes insurance fraud locally

Insurers carry out civil investigations and may refer cases to the Insurance Fraud Bureau. Police Scotland investigates criminal allegations. The Crown Office and Procurator Fiscal Service decides whether to prosecute. The Insurance Fraud Enforcement Department, hosted by City of London Police, works with partners across the UK and may assist in cross-border cases.

What are my rights if Police Scotland asks me to attend an interview

You have the right to legal advice under the Criminal Justice Scotland Act 2016. You can speak to a solicitor before the interview and request that a solicitor attend with you. You are not obliged to answer questions. Anything you say may be used in evidence. Do not attend or provide a statement without first taking legal advice.

Can insurers void my policy for a mistake on the application

It depends on whether the misstatement was careless or deliberate. Under the Consumer Insurance Disclosure and Representations Act 2012 and the Insurance Act 2015, remedies are proportionate. A careless error may lead to a proportionate remedy, such as a partial payment or adjustment of terms. A deliberate or reckless misrepresentation can allow an insurer to void the policy and refuse all claims.

Will a fraud allegation affect future insurance

Yes. Insurers may record information on fraud prevention databases such as Cifas. This can make it harder or more expensive to obtain insurance and may impact credit checks. If you believe an entry is wrong, you can challenge it and seek legal help to correct inaccuracies.

What penalties could I face if convicted

Sentences depend on the value, planning, and circumstances. Penalties can include fines, community-based disposals, or imprisonment. Courts can also order compensation and confiscation of criminal benefit under the Proceeds of Crime Act 2002. Separately, insurers may sue to recover paid sums, and you may be liable for legal expenses.

How do I challenge an insurer’s fraud decision

Request full reasons and the evidence relied on, including call recordings and documents. Provide your own evidence such as invoices, photos, and witness details. Use the insurer’s complaints process. If unresolved and you are an eligible complainant, take the case to the Financial Ombudsman Service. Get legal advice if there is a risk of criminal allegations.

What should I do if I suspect I was the victim of a staged accident

Report it to your insurer and Police Scotland as soon as possible. Preserve evidence such as dashcam footage, photographs, telematics data, and witness details. Do not discuss fault with the other party at the scene. A solicitor can help you present evidence and protect you from unfair liability or fraud allegations.

Additional Resources

Police Scotland

Crown Office and Procurator Fiscal Service

Scottish Courts and Tribunals Service

Citizens Advice Scotland

Financial Ombudsman Service

Financial Conduct Authority

Insurance Fraud Bureau

Crimestoppers

Law Society of Scotland

Scottish Legal Aid Board

Next Steps

Do not ignore letters from insurers or police, and do not destroy or alter any documents or digital data. Gather all relevant materials such as policy documents, application forms, emails, texts, call logs, photographs, receipts, and witness information. If invited to an interview or arrested, exercise your right to a solicitor before answering questions. If your claim has been declined for suspected fraud, submit a clear written complaint with supporting evidence and consider escalating to the Financial Ombudsman Service if eligible.

Contact a Scottish solicitor experienced in fraud and insurance disputes. Ask about urgent steps to protect your position, including advice on interviews, correspondence strategy, digital forensics, and engagement with the Procurator Fiscal. Discuss funding options, including whether you qualify for assistance from the Scottish Legal Aid Board. Acting early can preserve evidence, narrow the issues, and improve your prospects of a successful outcome.