UK car insurance news
02/07/2008
Cash for Crash fraudsters to face court
Around 40 people, dubbed the "cash for crash" gang, will appear in court this week facing charges including UK car insurance fraud.
The gang are accused of deliberately causing rear-end shunts, where they suddenly brake hard in front of another driver and the innocent driver becomes 'at fault' in the car accident.
The criminals then submit fake invoices for vehicle damage and fraudulent claims for personal injury to the car insurance companies.
The arrests came after a two year investigation, Operation Exhort, carried out by Bedfordshire police and the Insurance Fraud Bureau (IFB).
Charges including conspiracy to defraud, possession of criminal property, conspiracy to pervert the course of justice, and obtaining, or attempting to obtain, a money transfer by deception will brought against the gang on July 24th.
UK car insurance experts believe the scam has cost the industry £5.3m. The IFB says that car insurance fraud totals approximately £1.5 billion a year. This adds 5% to the average motor insurance quote.
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