Crash for cash – road traffic accidents deliberately caused to claim whiplash compensation – is now at the highest level ever detected. So says Aviva, the UK insurer.
Organised gangs are at the heart of the increase in the number of these induced accidents, according to the firm. So far this year, Aviva has seen a 21 per cent increase in organised fraud over 2013, contributing to the record number of fraudulent motor claims. More than half of Aviva’s motor injury claims fraud is now organised in nature and the insurer reports over 6500 suspicious injury claims linked to known fraud rings. The insurance company suggests that Birmingham and Greater London are the UK’s crash for cash hotspots. The northwest – particularly Manchester – has been the focal point for crash for cash activity. However, a number of operations and prosecutions in that area, as well as the expansion of organised fraud in other areas of the UK, is changing that picture. Top 10 postcodes for ‘Crash for Cash’ by number of accidents are:
Birmingham (B)
Luton (LU)
North London (N)
Manchester (M)
Leeds (LS)
Uxbridge (UB)
Harrow (HA)
North West London (NW)
Bradford (BD)
Slough (IG).
To combat this growth of crash for cash, Aviva is asking the Government to look at treating minor whiplash injuries with rehabilitation, instead of cash compensation. Aviva believes this would remove the motivation for fraudsters to deliberately cause accidents in order to make a claim, as well as protect innocent motorists and help keep premiums low for customers.
Tom Gardiner, Head of Claims Fraud for Aviva’s UK and Ireland General Insurance business, said, “Crash for cash is not just a financial problem – it’s a serious social problem. No other form of insurance fraud puts the public at risk of serious injury.
“Imagine you’re driving the kids to school when the car in front slams on their brakes without warning, leaving you no chance of avoiding a crash. These deliberate accidents are on the increase, putting innocent motorists at risk simply so the driver in front can get cash compensation. Last year Aviva found these accidents increased by 51%, and they are continuing to grow. Part of the growth is coming as fraudsters are moving away from a small number of “hot spot” locations to a much wider footprint.
“The fight against fraud begins with an effective deterrent. In addition to more prosecutions and stronger sentences, we need to remove the financial incentive for minor whiplash claims like those claimed for by serial crash for cash fraudsters. We are asking the Government to consider compensating short-term whiplash with rehabilitation, instead of cash. Would crash for cash exist if there was no money in it? We don’t think so.”
Crash for cash not only threatens motorists’ safety, but also their pockets, adding an estimated £400 million to the cost of car insurance – or around £14 on every motor insurance premium. Fraudulent motor claims in Birmingham postcodes detected by Aviva totalled more than £4.7m through August this year. This can influence premiums in the Birmingham area, and is one of the reasons why Aviva is committed to fighting this reckless form of fraud – to reduce customer premiums. We are urging motorists to remain alert to crash for cash, especially in those areas where we know this is a problem. As our data shows, innocent motorists are put at an increasing risk from professional fraudsters which is why we’ve published*** advice to motorists to help them prevent getting caught up in this dangerous act.”
Advice
The insurer offers advice on how to minimise the risk of being targeted by the cash for crash fraudsters:
Stay alert: Pay attention to your driving and the cars/traffic around you
Keep your distance: Keep a safe distance between your vehicle and the one in front.
Roundabouts and slip roads: fraudsters target roundabouts and slip roads to induce accidents; be especially vigilant in these areas, allowing plenty of space
Two cars ahead: there are frequently two cars involved in inducing an accident – the car directly in front and the car in front of that car as well. Both may drive erratically. Allow plenty of space between you and the two cars in front.
Check the brake lights: A common trait in many vehicles involved in ‘crash for cash’ is failure of the vehicle’s brake lights. If you notice the car in front brakes and their lights don’t work, remain cautious, allow extra space between you and the vehicle, and perhaps distance your car from theirs.
Warning signs: Is the car in front moving particularly slowly or is it slowing down and speeding up for no apparent reason?
Driver Behaviour: If the driver in front is focusing on the back of the vehicle, that could be a sign they are looking for an opportunity to induce an accident
Passenger Behaviour: Are the passengers in the vehicle in front turning around and looking at you for no reason? They may be looking for a chance to induce an accident.
Collision Damage: Does the car in front look like it has been in other accidents – especially showing damage to its rear?
Meanwhile the development of a new body which will run an IT system that will randomly allocate medical experts for soft tissue injury claims and have responsibility for ensuring accredited medical experts should reduce fraudulent whiplash the Association of British Insurers (ABI) has said. Every week there are, the insurance trade body says, over 9500 whiplash claims, costing insurers £2 billion a year. The lack of any objective medical test has over recent years led to whiplash being the seen as what the ABI terms the fraud of choice.
Speaking at the Motor Accident Solicitors Society Conference in Manchester today, James Dalton, ABI’s Head of Motor Insurance, said: “Developing an IT system that randomly allocates independent and accredited medical experts to claimant lawyers is critically important in working towards the delivery of fundamental reform of the medico-legal reporting system. That is why the insurance industry has committed to fund the development of the MedCo system and we continue to work with key stakeholders through the Ministry of Justice to determine the key policy issues. Significant progress has been made so far: there is agreement on the structure of the Board including the independence of the Chair, broad agreement on the Articles of Association underpinning the company and the MedCo website will be operational this month.
“We look forward to working with claimant lawyers, medical experts and the compensator community over the coming months to turn MedCo into a reality.”
