Saturday 8 November 2014

'Crash for cash' claims at an all-time high, insurers claim


Aviva says that it has seen a surge in the number of deliberately staged accidents

A damaged car following a crash
A damaged car following a crash Photo: Alamy
Incidents of ''crash for cash'', where road accidents are deliberately staged to gain fraudulent whiplash-injury compensation, are at an all-time high, according to an insurance company.
So far this year, Aviva has seen a 21% rise in organised fraud cases compared with 2013, with organised gangs at the heart of the increase.
The company said Birmingham and Greater London were the worst areas for crash for cash cases, with other blackspots including Luton, Manchester, Leeds, Bradford and Slough in Berkshire.
Within Greater London, the worst areas included north and north-west London, including Uxbridge and Harrow.
In the past, Manchester had been the main area for fraudulent claims but the number had been reduced in that area due to a number of successful operations and prosecutions, Aviva said.
But the company added that fraudulent claims were adding around £14 to over motor insurance premium, with fraudulent claims in the Birmingham area totalling more than £4.7 million in August 2014 alone.
Aviva said more than 50% of its motor injury claims fraud is now organised in nature, with the company now having more than 6,500 suspicious injury claims linked to known fraud rings.
Tom Gardiner, head of claims fraud for Aviva's UK and Ireland general insurance business, said, ''We are asking the Government to consider compensating short-term whiplash with rehabilitation, instead of cash.
''Would crash for cash exist if there was no money in it? We don't think so.''
He went on: ''Crash for cash is not just a financial problem - it's a serious social problem. No other form of insurance fraud puts the public at risk of serious injury.''
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