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Biggest Insurer in the UK claims that insurance fraud has risen by 20%

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Aviva have recently reported that they have seen nearly a 20% increase in fraudulent claims which they say is caused mostly by organised gang crime. Over £110M of claims paid out were discovered to be linked to insurance fraud – this is 19% higher than in 2012.

Fradulent injury compensation claims account for over half of the claim fraud costs and “crash for cash” claims are thought to be the bulk of these claims. A “crash for cash” case is where an organised crash is staged so that gangs can generate easy income by claiming compensation for injuries. Tactics such as slamming their brakes on to cause the car behind to collide with them are often employed meaning that an innocent motorist can also be caught up in the process.

At present Aviva are investigating over 5,000 cases that are linked to organised gang crime such as “cash for crash” schemes. The number of fraudulent insurance claims being made is thought to add approximately £50 to every motorists insurance premium, meaning that average people are out of pocket due to criminal rings.

The insurance giant is seriously cracking down on such activities and will apparently stop at no length to deter future fraudsters. One case where they successfully proved fraudulent activity involved an accident from 2009. Social meda was used to link drivers and passengers of two vehicles involved in a scam – one of the vehicles was purposely damaged and then details of an accident that did not take place were used to claim compensation for fake injuries.

These extreme measures to prevent fraud can only be a good thing for the insurance industry and motorists alike and as the largest insurance provider in the UK Aviva are setting an example for other firms to follow.

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