posted 4 years ago

Bogus Claims push up Insurance Premiums

Figures reveal 18% rise in fraud

Figures have revealed an 18% rise in false claims and staged crashes which push up insurance premiums.  Tens of thousands of fraudulent ‘crash for cash’ claims are adding £90 to every driver’s insurance policy. The increase in staged crashes and false whiplash claims helped fuel the 18% rise in insurance fraud last year that cost a record £1.3billion. Nearly two thirds of this was paid out to motoring claimants  with the equivalent of one hundred and sixty four crash scams being exposed every day.

Insurance chiefs blame the increase on an epidemic of bogus whiplash claims as well as organised gangs operating ‘crash for cash’ schemes on an industrial scale. They warn the true figures could be much higher because the figures only relate to detected levels of insurance fraud. ‘Crash for cash’ accidents involve fraudsters deliberately crashing and then submitting bogus personal injury claims. The ‘slam on’ scam is common, where a driver brakes suddenly at a roundabout or junction, causing the innocent driver behind to crash into the vehicle. Not only is this frightening for the unaware driver it is dangerous, Baljinder Gill, 34, died in 2011 when three men tried to crash into a van in front of her car on the A40 in Buckinghamshire. Miss Gill’s Ford Fiesta rammed into the van and she was hit by another vehicle when she got out of her car.

The scams get worse only last week a bus company axed a busy route in Birmingham due to repeated fraud. In fact Central Buses received fifteen claims in one instance from people saying they were hurt in an accident which had only involved four passengers. Whiplash is the most common cause for claim, it is difficult to diagnose whiplash objectively and this has deterred insurers from defending claims in court. Whiplash claims alone now cost the industry more than £2.2billion a year accounting for eight out of ten personal injury claims after an accident. Britain has been branded ‘the whiplash capital of Europe’ by insurance experts and MPs.

An Association of British Insurers report reveals a total of 118,500 bogus or exaggerated insurance claims were detected last year and almost half were for motoring claims.  Exaggerated claims are submitted by motorists who have genuinely been involved in an accident but have been encouraged to submit inflated claims by lawyers whose hefty bills make the insurance industry’s costs even higher. The report concludes ‘Fraudulent motor insurance claims were the most expensive and common, with the number of dishonest claims at 59,900 up 34 per cent on 2012 and their value at £811million, up 32 per cent’.


Loading fraudsters' premiums will not work: they'll just drive without insurance. Hold them liable for the last year's fraudulent claims (from everyone at the Insurance Company they tried to fleece) or re-instate debtors' prisons where they will languish (at their expense) until they pay the fine (which should be at least 5 times that which they were claiming) plus costs. Simples.

Maybe if the insurance companies didn't sell ur details to the ambulance chancing lawyers the amount of whiplash etc claims would go down. I was hit by another driver in my works van and within 2 hours my works phone was receiving text messages from no win no fee lawyers.

Just to add on this very web page there is an advert from nationwide injury claims!!asking how much is your claim worth,, beggers belief they are encouraging these people

My daughter had an accident 2 weeks after passing her test,, she was in the wrong through inexperience , when I arrived the other driver a lady in a Subaru sport car was jumping around swearing and cursing obviously nothing wrong with her,, I saw the same lady several times later driving a lowered Subaru with her name up the side of it.. she claimed to have stress related problems and back injury's which ment she could not drive a car. !!!!I wrote a letter to my daughters insurers to report her with supporting photos which they chose to ignore and paid the woman 16k , insurance companys need to sort themselves out.

I agree with Brian M the sentences should be higher! I assisted with an inquiry that saw 49 fraudsters imprisoned for almost 70 years in total and now we are pursuing them under POCA. some of the accidents where years old but we still managed to get them convicted and imprisoned! Must admit there are still hundred of more crashes that we could have pursued.

The drivers that make these false claims should have a 40% load on their premiums for the following 5 years that will make them think twice before they submit the claim form

If this was a bank robbery the police would be all over it and the sentences of those found guilty would be harsh. Maybe deliberate insurance fraud penalties should be a lot higher, say in the five to ten year range.