The geography of bogus claims
Bogus and inflated personal injury claims relating to car crashes have become a massive and increasing problem. This is not a victimless crime either, we all suffer because losses to insurers as a result of this activity ultimately result in higher car insurance premiums for all of us.
The Insurance Fraud Bureau produce quarterly figures and analysis on this problem, and their latest report shows :-
- The problem is worst in Birmingham, Sheffield and Manchester
- That action by insurers and police prosecutions can ameliorate the problem, and that there are definite ringleaders and organizers of this type of fraud
- Luton was one of the worst areas for car crash fraud only 3 years ago, but is now much less prone to it because 33 individuals were charged and convicted of car fraud offences in thye intervening period.
- That insurers are now doing much more to deal with the issue. They have agreed to fund a designated police unit to deal with insurance fraud, including household insurance policy fraud and set against the context of there being well over 100,000 fraudulent claims a year resulting in losses of over a billion pounds.