Car accident claim news
MP calls for fraud clampdown
The Government has been urged to make extra efforts to clamp down on fraudulent car accident claims for compensation.
Gangs of criminals are said to cost insurance companies more than £200 million every year and Tory MP Richard Bacon asked ministers to look at ways of tackling the problem.
Talking at Westminster, the MP for South Norfolk said, "An induced car accident happens where fraudsters who wish to claim from an insurance company drive motor vehicles to busy road junctions where they perform unexpected, unnecessary and dangerous emergency stops designed to cause innocent members of the public to crash into them."
He went on to say how fictitious whiplash injuries are commonly claimed for and a single car accident claim can sometimes cost insurers more than £30,000.
The MP also revealed that an estimated 22,605 'cash for crash' car accidents had taken place on British roads since 1999 but the incidents are becoming so common that another 20,000 are likely to take place in the next 18 months.
Mr Bacon told ministers that the money made in the road accident compensation claim scams was regularly used in the pursuit of other criminal activities, saying, "Insurers believe the proceeds are now routinely being used to fund other forms of serious, organised crime including drug trafficking, people trafficking, money laundering and other frauds."
The Solicitor General reacted to Mr Bacon's pleas by accepting that there was a problem in the UK with fraudulent car accident claims and promised that more would be done to tackle the issue.