Faking whiplash claims will not be tolerated
Recently in the news concerns have been voiced about scam organisations ‘setting up’ car accidents in order to make fraudulent whiplash claims. In order to combat this and other types of insurance fraud, the new Insurance Fraud Bureau is celebrating its launch by scouring 160 million insurance policies for signs of potential fraud, such as staged accidents or arson. Headed by a former top policeman and sharing intelligence with police forces and government, it aims to cut insurance fraud which is estimated to cost the industry £1.5 billion every year.
In addition to this, Thatcham expects to produce “court admissible” whiplash research to help insurers fend off fraudulent motor claims by the end of next year. Whiplash is a difficult condition to disprove and it is becoming increasingly difficult to separate the real claims from those set up by fraudsters.
The work is part of an international insurance programme involving insurers from Sweden, Germany and Switzerland. The motor research centre has also enlisted the help of the legal profession, including a number of judges and law firms to ensure that the evidence is admissible in court. They also hope to have produced a prototype of a computer-based whiplash injury tool kit which analyses the injury risk resulting from crashes at different speeds and involving different types of cars and seats. This is being aimed at introduction at the end of the year.
Car insurance fraud has been rising dramatically and scam artists have been using the fact that whiplash as an injury is notoriously difficult to disprove. At the expense of the legitimate claims, these fraudsters have been taking in almost £4m a week thanks to their organised gangs. The Association of British Insurers (ABI) says there has been an upsurge in the number of incidents in Yorkshire, where gangs disconnect brake lights on their cars and slam on the brakes at roundabouts. When the innocent driver goes into the back of the car, he or she, is usually assumed to be the one at fault. The gang will attempt to claim from the victim's insurer. Witnesses, apparently independent, will come forward to help, but they are often part of the criminal gang.
The ABI has however quelled doubters who believe the insurance industry should be more vigilant by stating that these fraudsters are not getting away with their deeds and are getting caught all the time. The ABI pointed to the fact that almost £400 million of fraud was detected which is in itself a 50% increase on last year.
The IFB will be headed by ex-New Scotland Yard detective John Beadle and will cost £1.65m-with the costs being offset by a levy on insurers. Using industry databases, developing cross-industry intelligence and co-ordinating investigations between insurers, the police and other agencies, the organisation aims to combat organised fraud as well as fake disability claims for non existent or exaggerated injuries. With funding secured for the next five years, the bureau is taking a visible and proactive step towards combating this latest type of insurance fraud.
The public are encouraged to shop fraudsters by phoning the IFB cheatline on 0800 328 2550.
Updated on 6/28/2008