11th June 2015
The criminal activity of exploiting car crashes for cash is on the rise as more than14,000 fraudulent claims worth £95m in 2014 were detected by Aviva.
The insurer said this is equivalent to 39 fraudulent claims worth an average of £260,000 every single day.
It also found more than 6,300 instances of motor insurance application fraud – highlighting that fraud isn’t just a claims problem.
Motor injury fraud – including bogus claims, cash for crash and organised fraud – continues to be the biggest problem area and now accounts for 60% of all claims fraud Aviva detects.
Overall organised fraud increased 28% in 2014 to £38m – an increase of £8m against 2013. Aviva currently has more than 15,000 suspicious claims under investigation – 6,000 of these are motor injury claims linked to known fraud rings.
Tom Gardiner, head of fraud at Aviva, said: “Our figures show that insurance fraud remains a significant and complex challenge, but the biggest threat to customers continues to be fraudulent motor claims, which puts innocent motorists at risk of physical harm, while pushing up premiums for everyone.
“While genuine claimants have absolutely nothing to fear, our success challenging, defending and prosecuting fraudulent whiplash claims and organised fraud – even where it is not economic – sends a clear message that if you commit fraud against our customers, then it’s increasingly likely that we will catch you and prosecute you.”
The firm also found that in cases of motor whiplash claims, one in nine were potentially fraudulent.
“Although Aviva has continued to invest in its ability to detect, challenge and prosecute the plague of fraudulent whiplash claims, and supports steps taken by Government to address the problem, we believe that further steps must be taken to deal with the root cause of the UK’s ‘cash for crash’ industry,” added Gardiner.
“Changes we are calling for include removing the cash and profit incentives from the system, such as replacing cash compensation for minor, short-term injuries with rehabilitation.”