'Crash for cash' claim now in doubt thanks to new investigation

The insurance industry 'crash for cash' claims have been called into question by a well known  law firm which has mounted a six-month investigation into allegations that the scams counted for one in seven personal injury cases.

Thompsons Solicitors stated that its own investigations could not find any evidence to back up the claims made in a report undertaken by the Insurance Fraud Bureau (IFB) in January 2013 which stated  "one in seven" personal injury claims are linked to crash-for-cash scams, said to cost the industry £392 million per year.

A separate report conducted by Westminster's Transport Select Committee estimated that fraudulent personal injury claims cost in the region of £811m in 2013.

However, Tom Jones of Thompsons said that a series of freedom of information requests that were made to eight police forces across the UK found that almost all police forces had no record of handling any crash-for-cash cases. The only record of such a case was held by Derbyshire force that reported two fraudulent traffic accidents in 2011, but none since this date.

Ben Fletcher, IFB director, said: "The 'crash for cash' statistics published in 2012 were calculated using a robust methodology, which valued organised fraud rings identified by the IFB's advanced software within cross-industry claims data. ‘Crash for cash' remains a significant threat to the insurance industry, with the IFB currently managing 110 live investigations valued at over £120m."

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