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Daily Insurance Industry News
Monday 11th of December 2017
April 2, 2010

RSA and BBC expose cash-for-crash scam

by Gill Montia

Story link: RSA and BBC expose cash-for-crash scam

RSA and BBC expose cash-for-crash scam

An investigation by the BBC claims to have exposed a major cash-for-crash insurance scam in the Midlands.

Undercover reporters allege that a Woverhampton-based outfit, run by Zeeshan Ahmad, fakes accidents by smashing up cars in a yard.

In return for a fee, the journalists agreed to admit liability for an “accident” and handed over their vehicle to be used in a scam in which another driver would submit an injury claim plus costs.

Mr Ahmad then allegedly coached the BBC journalists on what to say to their insurers, giving the precise time of the “accident” and warning them not to report before it had occurred!

What Mr Ahmad didn’t know was that the BBC was working with fraud experts at RSA, who eventually received a claim from the supposed driver of the other vehicle, for whiplash injuries for driver and passenger, plus hire car costs.

Chairman of the Insurance Fraud Bureau (IFB), John Beadle, explains: “Wrapped up in the claim will be bodily injury, normally whiplash, plus storage of the vehicle, removal of the vehicle from the scene”.

He adds: “When you take all these together the cost of this kind of a claim could well be around £20,000.”

According to the IFB, around £44 every motor insurance premium results from this kind of fraud.

 

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