Road accident fraud ring arrests

Read the latest on car accident claims news in the UK.

Merseyside police have made a number of arrests this week following information received from Allianz insurance about the activities of a group of individuals.

The gang were alleged to have taken part in bogus accidents known as "staged accidents" that led to numerous claims being made for personal injury and credit vehicle hire.

The usual method for the alleged fraudsters involved selecting an unwitting victim who would be coerced into colliding with the fraudsters vehicle - slamming on the brakes directly in front of the vehicle would be one such method used to facilitate an impact. There followed a series of moneymaking car accident claims which would involve whiplash claims from numerous occupants of the vehicle and then car repair and hire costs. From one innocuous accident came a revenue stream that could run into tens of thousands of pounds.

The insurers in this instance had liaised closely with the Insurance Fraud Bureau (IFB) in collating vital information about the gang. The insurance industry as a whole is now more focused than ever on beating the fraudsters.

There is however a long way to go as more than £1.6 billion is lost to the fraudsters every year.