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A minor accident became a £20,000 claim after the other driver lied about fake passengers' injuries - what now?

My friend had a very minor car accident. No damage was done to either car and no one was hurt in any way. Both drivers say it was the others' fault. There were no witnesses. The other driver was the only person in the other car, however he has now added three people as passengers and witnesses onto his claim. They all apparently have injury claims, including the six year old girl who sustained a bang on the head, is apparently traumatised and suffers from nightmares. It looks like they will be claiming over £20,000 from a minor accident. What can he do? The insurance company has more or less said it his word against theirs.

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Tell the insurance company that they are participating in fraud being committed against him should they not act. Speak to a manager, not a claims handler who does not know what they are talking about. It is not his word against theirs, far from it. It's about the evidence that either proves or disproves the incident happened and the injuries sustained as a result of it.
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