New data has shown a 60 percent increase in personal injury claims in Scotland over the course of a year which is being linked to the fraudulent “cash for cash” crime. Crash for cash is an induced accident where fraudsters target innocent motorists to become the “at fault driver”, for example by deliberately slamming on the brakes of their car to ensure the car behind crashes into them.
LV= General Insurance is currently dealing with 10 organised fraud investigations with a value of £2million.
Examples include policies taken out at addresses in England, with vehicles driven over the border into Scotland for the purpose of having an accident.
The insurance providers are continuing to work with Police Scotland and the Insurance Fraud Bureau to tackle the issue.
The significant rise is thought to have been prompted by whiplash reforms which now apply in England and Wales, and have been introduced to reduce the amount of compensation drivers are entitled to following a low-value road traffic accident.
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The rules also limit the amount of legal fees which are recoverable and are designed to reduce insurance costs for honest motorists.
However, these rules do not apply in Scotland, and this extra cash is vital for criminal gangs who rely on fraudulent crime to make money.
Therefore, they’re using the M6 route into Scotland to prey on innocent victims, with the spike in claims demonstrating just how persistent fraudsters can be in evolving their crimes.
Hotspots which fork off the M6 onto main road corridors in Dumfries and Ayrshire include the A70, A74, A75, A76, M74, however, accidents have also been identified in the Greater Glasgow area.
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He added: “I followed but then suddenly the car slammed on to a complete stop, even though the road to the right was clear and I went into the back of him. I didn’t even see any brake lights come on when he braked.
“To think criminals do this on purpose for money is shocking, and is putting innocent drivers at huge risk.
“I was lucky and I wasn’t too badly injured or shaken up, but others might not be so fortunate. Creating more awareness for the public is so important.”
It is estimated that only 50 percent of drivers are familiar with this type of fraud, with it being lower for Scotland at 47 percent.
According to a YouGov survey, nine in 10 people in Scotland have never been a victim or targeted by crash for cash, despite 47 percent admitting they wouldn’t be confident to spot the signs.
Alastair Ross, Head of Public Policy for Scotland, Wales and NI at the Association of British Insurers added: “Crash for cash criminals are a menace that put the lives of innocent motorists at risk.
“The amounts that they fraudulently claim can be huge and impact on the motor premiums paid by honest motorists.
“Personal injury reforms in England and Wales may encourage fraudsters to stage more motor accidents in Scotland.
“This is why it is so important for all motorists to be on their guard – if you suspect an incident is suspicious do not put yourself at risk but report your suspicions to the IFB confidential Cheatline.”
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