Birmingham in top ten of 'crash for cash' league

May 28 2009 by Mark Cowan, Birmingham Mail

GANGS of fraudsters are raking in millions of pounds staging crashes in which they ram the cars of innocent motorists and then claim thousands of pounds on insurance.

Insurers say the ‘crash for cash’ phenomenon has blighted Birmingham and named the city in a top ten league of shame for the fake crash bandits.

The Insurance Fraud Bureau said while the growth of fraudulent claims has been contained, analysts still placed Birmingham at number six in the hot spot league.

Bradford topped the league, followed by Blackburn and then Oldham. Walsall also made the top 20 for organised insurance swindles, coming in at number 16.

Typically, fraudsters drive to busy road junctions and then perform unexpected and, unnecessary emergency stops designed to cause innocent motorists to crash into them.

Claims are made to the innocent motorist’s insurer, often including several accounts of fictitious injuries from members of the criminal gang.

Bureau chairman John Beadle said: “The criminal gangs targeting honest motorists are ruthless.

“Innocent lives are being put at risk and fraudulent insurance claims add approximately £40 to every premium paid by honest policy holders each year. Left unchecked these criminal networks grow rapidly, split and even franchise smaller networks which in turn grow prolifically.

“The key to success is collaboration between the insurance industry, police, public bodies and the general public.

“We must continue to take a rigorous approach to dealing with this significant national problem which is impacting many towns and cities across the UK.

“Insurance fraud is not a victimless crime; criminals must be brought to justice.”

The Bureau currently has 25 active joint police operations spread across 13 police forces.

Since its formation in July 2006, the Bureau has been instrumental helping police to make nearly 300 arrests of people who were trying to defraud insurers, leading to 29 convictions and prison sentences totalling more than 20 years.