One police chief recently told MPs that motor car insurance fraud has been linked to organised crime.
Chief Superintendent Geraint Anwyl recently stated that defrauding car insurance companies has become both very profitable and highly organised.
The Association of Chief Police Officers representative stated that perpetrators of fraud were setting up claims management firms where the victims, solicitors, and doctors involved sometimes can all be members of the same crime syndicate.
Many insurance industry experts state that staged motor accidents can raise car insurance rates by £44 for every insurance customer. No longer is the activity simply confined to inner-city areas; as insurers have begun carrying out postcode checks on suspicious claims, fraudsters have begun to spread out their operations to avoid detection.
The frequency of fraudulent claims is still extremely high in some regions of the country. Motorists in some North West postcodes have had difficulty in securing discount car insurance as a result.
Mr Anwyl stated that the fraudulent offences in question have spread right up the spine of England from their London epicenter. He told MPs that since the perpetrators have become highly mobile it has made detection and apprehension of them more difficult.
In a related news story, one online comparison site recently discovered that 5 per cent of all drivers may have committed insurance fraud. Moneysupermarket.com found that for every 20 motorists aged 35 and younger, one of them had deliberately braked in order to cause a collision with the driver that was following them. Doing so places the responsibility for the claim on the driver that was immediately behind them.
No information was available in regards to the relationship between organised crime and the Moneysupermarket.com research findings. Likewise Mr Anywl’s comments to MPs did not touch on the issue.