Number of staged accidents increases
Insurance Post / 8th September 2005
Staged motor accidents are increasing in frequency, and costing insurers thousands of pounds a time, it was claimed this week.

Despite industry efforts to tackle the problem, Paul Champion, managing director of motor fraud specialist AIS 2000, insisted more could be done to root out cheats.

The Association of British Insurers admitted staged accidents were still a concern for its members but said that no new initiatives were planned to address the issue.

An industry working group, incorporating insurers Royal and Sun Alliance, Allianz Cornhill, loss adjuster Cunningham Lindsey, and the British Insurance Brokers' Association, was set up in May 2004 to discuss ways of preventing staged accidents.

Mr Champion said: "We are seeing a lot more than in the past. People are making a lucrative amount of money out of this.

"Hire vehicles and privately owned vehicles that may have already been damaged, but only had third-party cover, are most likely to be used and the problem has been getting worse during the past 12 to 18 months."

On ways to prevent the fraud, he added: "Positive investigation into claims will send out the right message. Hire firms, and motor insurers in general, can put into place simple indicators to arouse suspicion, such as checking the amount of, and consistency of, alleged damage to both vehicles. Invariably, the parties involved know each other.

"Those involved will either be organised gangs, making regular claims, or simple one-off claims by unscrupulous individuals to cover uninsured loss and fabricated injuries. These criminals view hire and insurance companies as easy money"