Organised criminal gangs are putting lives at risk by deliberately causing car accidents in a £200m rip-off, insurance fraud investigators warned last night.

 

Experts warned that the growing “crash for cash” epidemic presents a particular threat to women as offenders target vulnerable motorists.

 

There are already 22,000 known cases of staged crashes - used to lodged lucrative insurance and personal injury claims - and this is set to soar in coming months.

 

The problem was highlighted in Norwich Union's annual fraud report and by the Insurance Fraud Bureau which claim there will be a further 20,000 deliberate crashes on the nation's road over the next 18 months - and with an increasing number of cases in East Anglia.

 

Chris Hill, the company's head of claims fraud, said criminals brake suddenly or carry out dangerous manoeuvres in a bid to force other motorists to hit their vehicles.

 

This allows them to exploit the virtually automatic admission of liability by the victim's insurers.

 

They then claim up to £30,000 which is often used to fund other crimes including drug trafficking, terrorism and money laundering.

 

Mr Hill added: “Those responsible are indiscriminate in their choice of targets - we know of cases in which commercial drivers have been victims but equally we know of cases involving mothers with their children in the car.”

 

South Norfolk MP Richard Bacon will today use a parliamentary debate to call for increased government action saying the crimes pose a serious threat to public safety and have led to a significant increase in insurance premiums.

 

Mr Hill said: “We believe this started in the north of England but is quickly spreading as criminals franchise the operation out to other gangs and it is now a real danger in all regions including the east.

 

“Since 1999 there have been more than 22,000 such 'accidents' but it is growing so quickly that we expect to see almost the same number over the next year and a half.”

 

There are thought to be about 40 sophisticated gangs carrying out the offences aided by legal firms and mechanics across the country. Often they have accomplices in another vehicle to act as witnesses to support their claim. They have even been known to detach brake lights to make their actions less predictable.

 

“There are three main concerns,” Mr Hill said. “Firstly the serious risk to public safety, followed by the effect on insurance premiums and the knock-on effect of funding other organised crime.

 

“It is impossible to estimate the increase in premiums as a result of this but we know this scam is worth £200m-a-year and rising.”

 

Mr Bacon said the government must take action by urging police to treat it as a priority and by providing forces with the necessary resources.

 

He said: “Crash for cash scams are putting innocent drivers in danger, particularly women driving alone and with children. They are nearly risk-free for the perpetrators and provide many millions of pounds to invest in other areas of crime.

 

“Unfortunately, the government has made insurance fraud a low priority for the police so the problem continues to grow. I will be asking ministers to take action to protect the public and to make stamping out this harmful and dangerous activity a high priority.”

 

Norwich Union also acknowledged that the traditional assumption by insurance companies that the person driving the vehicle which collides with another vehicle is responsible for the accidents may have to be reviewed.

 

In an earlier answer to a parliamentary question lodged by Mr Bacon, solicitor general Mike O'Brien moved to reassure the public that the police and Crown Prosecution Service take such a threat seriously.

 

Mr O'Brien said: “Offenders often make false claims to state benefit based on injuries that they claim to have suffered. This criminal activity has been found to have links with serious organised criminal gangs.

 

“The fact that innocent road users are effectively targeted and endangered is a matter of considerable concern, as is the significant financial impact on insurers estimated to run into hundreds of millions of pounds which is then passed on to members of the public.

 

“The CPS considers each case on its merits. If, in a particular case, the evidential test is met, there is likely to be a strong public interest to prosecute as the offence will usually have been premeditated, involve a group acting together, the potential or actually pecuniary advantage will be great, and importantly, there will be a real risk or actual occurrence of physical injury to another.”

 

http://new.edp24.co.uk/content/news/story.aspx?brand=EDPOnline&category=News&tBrand=edponline&tCategory=news&itemid=NOED16%20Jan%202007%2008%3A35%3A30%3A040

And what does your department say we do when it happens to us?? hmm? ;)

The best way to prevent people like that is to carry a camera in the day with you (one of those £3 use-once cameras will do), and if they run into you, you can take photos of the damage.

 

Watch out for digital cameras though, the insurance company might not accept that photo.