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Accident claim news 14/12/2006

The cost of bogus car accidents revealed

Shocking figures have come to light revealing that more than 22,500 fraudulently-staged car accidents have taken place in the UK since 1999.

The eye-opening stats have been announced by the Insurance Fraud Bureau (IFB) and are bad news for honest motorists all across the country.

Those causing the intentional car crashes often use busy junctions as their hunting grounds and will execute unexpected emergency stops that cause other drivers to smash into them. They will then make compensation claims for false personal injuries, such as whiplash, that have supposedly been caused by the vehicle accident.

So-called 'crash for cash' stings are said to have originated in the north-west but have now spread throughout the UK, reaching up into Scotland and as far as London and the south coast.

Fraudsters attempting to abuse the system that is there to help those who genuinely need personal injury compensation often pack their vehicles with passengers before causing the accident. The result is five people making compensation claims instead of just one.

Experts reveal that as much as 30,000 can be made from a single fraudulent car accident claim and it is thought the money gained is often used to fund other serious criminal activities such as gun running, drug trafficking and prostitution.

Not only are the criminals gaining from the practice but honest drivers are also losing out too with fraudulent accident claims being blamed for a five percent rise in motor insurance premiums.

The problem of intentional car accidents is becoming a serious issue and John Greenway, Tory MP and chairman of the Commons All Party Working Group for Insurance and Financial Services, said, "This is now a significant national problem, hitting many cities and needing an urgent solution."

The police have recently made extra efforts to put a stop to those making fraudulent car crash compensation claims and are working closely with the Insurance Fraud Bureau to tackle the problem. The alliance has already paid dividends and 18 individuals were recently arrested in Hertfordshire and Bedfordshire, leading to the identification of criminal assets worth almost 5 million.

But there is still a long way to go until the problem is solved. In addition to the police and the IFB, UK personal injury solicitors and motor insurance firms are attempting to tackle the problem by liaising with the relevant authorities to ensure that car accident fraudsters are not given the opportunity to exploit the system.

A spokesman from The Claim Solicitors, the car accident compensation claim experts, said, "Fraudulent claims cost millions of pounds every year and we are doing everything we can to make sure they are stamped out."