Car owners are being advised to be extra-careful on the roads because the amount of ‘crash for cash’ deliberate accidents is increasing. The Insurance Fraud Bureau (IFB), claims ‘induced accidents’ – whereby drivers cause a crash on goal to profit from phony insurance claims – are rapidly being a serious problem. Moreover, they cost the insurance industry over? 200m in payouts.

The Insurance Fraud Bureau, (IFB) is an industry-funded organisation which investigates fraudulent claims. Mouthpiece chairman, Richard Davies says that after this practice started out it was restricted to the north west of England nevertheless there are more incidences through the southerly east, especially around London, uk. Mr Davies thinks it is now an concern of major safety and national concern.

In Gatwick, over 10 people have been charged with aiding to commit fraud by dangerous driving in the last month, A further 25 people were imprisoned in London for failing to be witnesses in a sizable crash-for-cash syndicate concerning top-of-the-range cars. 

Adrian Webb from insurer Esure remarks that this scam of induced accidents is one of the most quickly growing aspects of claims scam. He also said that it is one of the most dangerous because unlike most fraud, it can physically hurt or even kill someone.

In a crash-for-cash incident, the fraudulent driver will usually brake suddenly when getting out of a motorway junction, thus making the car lurking behind crash into the back again of them. These fraud drivers sometimes even eliminate their brake lights in order that the driver behind has no warning to slow down.

Once the parties included have exchanged insurance details, the fraudsters will commence making claims for personal injuries they don’t have – and some circumstances, making them for folks who weren’t even present. Possibly if they were the only person in the car, they will assert for more passengers as well as claiming for harm to their vehicle. In some crash-for-cash rings, there are bogus witnesses, people saying they were at the accident scene when they weren’t.

One of the most popular says by fraudsters is perfect for whiplash injuries because it causes the major payouts from insurance companies. Whiplash boasts alone account for around? 66 of each car insurance policy in the UK. In addition, the Relationship of British Insurers (ABI) estimates that whiplash documents for approximately three sectors of private injury promises which represents more than a thousand every day, a 25 per nickle embrace the last five years.

Whiplash doesn’t show up in medical reads and often isn’t experienced until days following the incident. Because it is difficult to diagnose, it is not easy for providers to see whether the state is genuine or not.

Law-abiding drivers are picking up the bill for the non-genuine claims: the IFB estimates that insurance rates rise at least 5 % to pay for fraudulent claims. Drivers who are victims of any crash-for-cash scam will lose their no-claims bonus, and be susceptible to higher subsequent insurance costs following the bogus state.

Because of the character of the fraud, it is impossible to notify when you have been caught up in a fraudulent car accident until your insurance company receives a claim from the other party. This may also take a long time for an induced incident to be recognized because an insurer is only going to look into if statements from witnesses don’t tally the policyholder’s version of events.

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