Insurers win £300,000 in “crash for cash” compensation

by Gill Montia

Story link: Insurers win £300,000 in “crash for cash” compensation

A civil action brought by a consortium of seven UK motor insurers over a “crash for cash” scam has been successful.

The High Court case relates to a major criminal ring involving 57 fraudsters in the Greater Manchester area, who used ordinary members of the public to stage their accidents.

Last week, Mr Justice Holman awarded the insurers £300,000 in damages, the total taking into account their losses, the cost of investigating the claims and of bringing the case.

Unusually, an exemplary charge of £92,000 was included to reflect the extent of wrongdoing by the fraudsters.

Commenting on the outcome, LV spokeswoman, Ursula Coulibaly, said: “This is an excellent example of insurers working together for the benefit of both the industry and consumers.”

She added: “LV is delighted the judge has seen fit to award these damages and we hope this will give insurers the confidence to bring civil action for similar cases in the future.”