Clamp down on cash for crash criminals
“It’s been reported that insurance fraud has hit an all-time high, costing a staggering £1.3bn. False car smashes account for £811m of that figure, meaning UK households are having to find an additional £50 in premiums per year.*
“So it’s good to hear that the Government is clamping down on the issue of exaggerated liability claims, particularly in the area of cash for crash. This has become a huge issue, with motor accidents being faked by criminal gangs to claim insurance compensation.
“There’s also been a growing culture of whiplash and overstated injury claims being made by individuals involved in a scrape. This has often been encouraged by legal professionals offering ‘no win no fee’ services and encouraging claimants with a cash incentive or an electronic gadget ‘freebie.’
“The Ministry of Justice is drawing up new rules to address this particular type of insurance fraud – a move that’s been welcomed by many. Courts will be given greater powers to dismiss cases where information has been falsified or where unconvincing whiplash assessments are presented. And only independently approved medical practitioners will be able to assess whiplash claims at a fixed cost.
“Some might say these measures are long overdue. Others believe they don’t go far enough. Whatever your viewpoint, there can be no doubt that any steps taken to clamp down on insurance fraud – particularly in the motor industry – can only be a good thing for the majority of consumers who are paying the price for the unscrupulous minority.”
Bryan Banbury is Managing Director at Russell Scanlan, one of the UK’s leading independent insurance broking and risk managing firms.