Insurance industry advocates for more proactive police involvement in combating fraudulent motor accident claims. The Insurance Fraud Bureau found that organized cash for crashes claims has decreased by 11% over the past two years. However, this was only in areas where police are heavily involved. Fraudulent claims are also rising in areas where there is still little to no police involvement, such as Ilford, Barking, Halifax, and Liverpool.
These cases can put innocent motorists at high risk. They could be motorists who wouldn’t otherwise be involved in any type of insurance claim. Major insurers now work closely with police to inform them about any claims they suspect may be part in an organized attempt to defraud industry through staged accidents.
Three types of accidents can be described as “cash for crashes” events. An induced accident is the most serious type. Fraudsters intentionally engineer a crash with an innocent driver. These accidents often happen at intersections and roundabouts. The fraudster’s vehicle is suddenly pulled in front of the target’ vehicle, then it breaks sharply, causing the target car to collide with its rear. A’staged accident’ is where the two cars are controlled by fraudsters. They set up collisions or damage other ways, then submit claims.
Paper claims are the third type of fraudulent claim. The paper claim claims are based on bogus paperwork and the vehicles are not actually involved in an accident. Multiple occupants of fraudulent vehicles can claim whiplash, inflate repair bills, and courtesy car rentals. This can make a minor claim into an important one.
Specialist claims solicitors and insurance companies are quickly catching on to the fraudsters’ antics, but they are furious that the time being spent in these cases is not being used to deal with genuine victims’ claims. This practice is now being considered a form organised crime by the police, which has led to greater focus on stopping fraudsters. The Insurance Fraud Bureau was established three years ago. It has assisted police in making more than 300 arrests, and is currently active in 13 police departments. Insurance specialists and claims specialists hope that the increased visibility and involvement of police will discourage fraudsters from taking advantage of the system.
It is important to capture all details of an accident (photos are the best evidence) and to ensure there are witnesses. If a fraudulent claim is made, the evidence will quickly shed light on it and save everyone time and money. As people realize that this is a criminal act, the threat of prosecution will discourage gangs from staging cash for crashes incidents and putting innocent motorists at risk.
One gang tried to get PS5million from insurance companies. They were involved in a series of fake car accidents that occurred over two-and-a-half years. Now they are serving up to four year sentences. Although the insurers worked closely with the Insurance Fraud Bureau of London and the City of London Police to bring them to justice they know there are many gangs out there who will stage manage accidents, putting drivers’ lives at risk. They will be held accountable for their actions only if they continue to cooperate with the police, the claims specialists and the insurance companies.
