Claims and scams
An accident management company has revealed that more than 25 cases of attempted motor fraud a week are being prevented.
The company which represents car manufacturers, dealers and insurers, warned of a dramatic rise in fraudulent activity during the second quarter of 2009.
The Insurance Fraud Bureau stated that the number of motorists deliberately causing a road accident to file a whiplash claim from whiplash injury is now a serious nationwide problem and is estimated to add £40 a year to premiums.
Industry experts believe that such premiums will have increased by a further 10% by the end of 2009 as a result of such false claims.
Sue Longthorn, the managing director of an insurance firm, said: "Insurance fraud costs our industry £3 billion a year. Unfortunately this cost has to be met in increased premiums, so it is definitely not a victimless crime."
Updated on 22/07/2009