Black cab driver faces prosecution for false retirement claim
A London black cab driver is to be prosecuted for contempt of court after falsely claiming that he had been forced into early retirement by an accident.
14 Jul 2010
Michael Seabrook continued to work as a black cab driver after claiming an April 2006 accident had forced him to retire. Photo: ALAMY In what is believed to be the first case of its kind, Aviva asked private detectives to follow Michael Seabrook, 69, who they found continuing to work after he had claimed an April 2006 accident had forced him to retire.
Mr Seabrook, of Ilford, Essex claimed more than £52,000 in lost earnings but settled his case for just £500 after Aviva came up with covertly shot footage.
He was hit with a £3,000 legal costs bill, leaving him with a net loss of £2,500, London's High Court has heard.
Aviva now says the black cab driver, who signed a court document attesting to the truth of his claim, should face jail for contempt.
At a preliminary High Court hearing, Lord Justice Hooper, sitting with Mr Justice Kenneth Parker, granted permission for Aviva to launch its bid to have Mr Seabrook sent to prison.
Mr Seabrook disputes Aviva's claims, and his barrister, Abdul Gofur, pointed to his poor health and argued that he had already been hit hard enough by the legal costs bill.
In a sworn statement, Aviva's solicitor, John Lezemore, claimed the surveillance footage, taken over seven week days in late 2008 and early 2009, showed that Mr Seabrook was driving his cab despite claiming that he had had to "pack in" his trade due to his crash injuries.
He said Aviva was taking Mr Seabrook to court "as a deterrent" to others.
Describing insurance fraud as "endemic", Mr Lezemore said: "The reason for that is that many perpetrators perceive it to be a victimless crime for which the penalties, if caught, are negligible.
"The advent of accident management companies and no win no fee lawyers means that all fraudsters need to invest in their fraud is a day of their time at trial, if the case goes that far."
Even if they are exposed, "they merely walk away from the litigation unscathed", he added.
"It is important that the public understand that they are paying for the illicit proceeds of such frauds through higher insurance premiums...it is in the public interest that fraudulent claims should stop".
In its response to Mr Seabrook's claim, Aviva argued his case was "contaminated by spectacular dishonesty" and accused the cabbie of setting out to perpetrate "a manipulation of the civil justice system on a grand scale".
Aviva's bid to have Mr Seabrook jailed for contempt will now go ahead on a date to be fixed.
An Aviva spokesman said after the court hearing: "As the UK's largest insurer, we are serious about cracking down on insurance fraud. If you commit insurance fraud, you could be pursued through the criminal courts with the possibility of going to jail."
Source; telegraph.co.uk
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