“Crash for cash” gains ground
A new study published by Keoghs claims that motor insurance fraud is affecting more of England’s most densely populated areas than ever before.
The law firm’s 2010 Motor Fraud Index builds on similar studies published in 2008 and 2009 and highlights the cities and regions where the highest numbers of suspicious motor claims are made.
It also indicates how this type of fraud, which predominantly takes the form of “crash for cash”, has spread in recent years.
According to Keoghs, a decade ago the problem was associated with a few areas in the north west of England.
However, the firm’s head of counter fraud strategy, James Heath, says:”‘Crash for cash’ fraud now affects all of the most heavily populated regions of England and Wales.”
He adds: “Across the board, every major town and city has seen an increase in the number of suspicious claimants.”
The ten worst affected areas – and 17 out of the top 20 – are located within the conurbations of Greater London, the West Midlands, Greater Manchester, West Yorkshire and Merseyside.
Birmingham heads the league, followed by Manchester, East London, Liverpool, Bradford, Oldham, Blackburn, North London, Bolton and Leeds.
Last month, a civil action brought by a consortium of seven UK motor insurers over a “crash for cash” scam was successful.
The High Court case involved a major criminal ring of 57 fraudsters in the Greater Manchester area, who used ordinary members of the public to stage their accidents.
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 added to reflect the extent of wrongdoing by the fraudsters.
Category: Car Insurance News, Insurance News
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