Car Insurance Fraud
Beware; we have modern-day "Dick Turpins'" at work on our roads. Not quite "Stand and deliver" at gun point, but there's a striking similarity.
Innocent drivers are being targeted in this frightening new crime which appears to be spreading across the country. Effectively, we have an ambush situation.
Car Insurance Fraud - This is what can happen:
These "set up" crashes commonly occur at really busy roundabouts or motorway slip roads. The instigators of these incidents are skilled at pinning the blame on the innocent motorist. These modern day highwaymen work in teams, owning and managing repair garages and car hire companies. These firms present falsely inflated invoices for work carried out, hire of a car whilst the car is off the road and so on. They then make a bogus claim on the blameless motorist's insurers, often inflating it for maximum pay-out and claiming for compensation for so-called injuries to the driver and passengers. Often the vehicle which they use is an old banger, which will probably contain the maximum number of passengers, all claiming to have been injured in some way and seeking compensation for this and probably loss of earning too. In this way a minor accident claim can escalate into a claim of £20,000 or more.
Car Insurance Fraud Bureau
Insurers are quite rightly extremely concerned about the scale of these so called "accidents" and believe there could be as many as 10,000 of them occurring per year. A single insurance company may not easily pick up on the organised fraud but working with other insurers will give benefits. With this in mind the Association of British Insurers have created an Insurance Fraud Bureau. They will monitor details of suspect claims and scrutinize millions of them to find patterns or links. It is intended that the bureau will liaise with police and hopefully will take civil prosecutions against these fraudsters to recover money which has already been paid out.
There was a case of insurers linking 400 "staged accidents" to one particular gang, involving other crimes in addition to the car insurance fraud, where the police would only get involved if the investigation was funded by the insurers. Insurance fraud may be low on the priorities list as far as the police are concerned but in view of the danger to drivers as a result of these unpleasant incidents their reluctance to get involved will have to change.
A Home Office fraud review is due out in the summer of 2006 and hopefully the Association of British Insurers concerns will be addressed in this.
Advice To Avoid Being Caught In A Car Insurance Fraud Scam...
In the meantime, some advice from Norwich Union's head of fraud, Chris Hill, who says "Keep your distance from the car in front at roundabouts and slip roads and cut your speed. Keep an eye on the vehicle in front. The occupants may turn to look at you or may even make a gesture just before the trap is sprung."
If a crash does happen, remember to get as much information as you can. Note how many occupants were in the other car, their sex and as much detail as you can about how they were dressed. Make a note of these details and make sure your insurer is aware of them.
These gangs are putting innocent drivers and their passengers at risk. It is vitally important that insurers and drivers work together in a concerted effort to stop this crime.
Resource Box
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Date Added: Thursday 1st May 2008
"I know of somebody using a different address to get cheaper insurance. In a case like this, would they be insured? They own the other property, but do not live there."
David H.
Date Added: Tuesday 25th March 2008
"cases like this really depress me. what was the verdict?"
Admin
Date Added: Monday 24th March 2008
"Well I had a taxi run into the rear of my car when I braked (and my car never had fierce brakes anyway). The bloke had been tailgating ("pushing") hooting and making "W**ker" signs all because I paused to allow a car to pull out of a parking space. In court the taxi driver turned out to be a champion perjurer and he even blackmailed the judge in a roundabout way by getting his solicitor to ask leading questions. (His opening gambit stated that he was a family man with kids). His solicitor then asked "What will happen if you lose this case?" to which the reply was "My insurance premiums will go up and I might not be able to work". Geddit? what he is implying is that if he loses the case he will claim the dole for himself, his wife and kids. He perjured himself saying I had reversed back into him deliberately and his statement that was false in a great many other respects described my blue hatchback as a red saloon. (The red saloon was the car I allowed to pull out of the parking space) When questioned about this he said "Oh the car was a bit dirty so I could have got the colour wrong" and as to the shape he waffled by saying "There's not much difference in shape between saloons and hatches on that model". The court case was a stitch-up from start to finish and I think that dark forces have been at work. As to British "justice" the late Lord Denning said "In British courts you don't get justice, you get law". Well I'll second that as in my honest opinion the judge deserves to be sacked and the perjurer deserves to go to jail. Still seething - and its not the money aspect that riles me, I'd give that to charity. No what riles me is losing a case because of an incompetent judge and a champion perjurer. Afterwards I heard through the grapevine that "There was a grating sound before the bump" - Oh really, that sounds like worn out disc pads to me, no wonder the taxi couldn't stop. Nice how people who witness things don't like to get involved isn't it? "
Davey
