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Birmingham named 'crash for cash' capital of England | |
(about 2 hours later) | |
Birmingham has been named the ‘crash for cash’ capital of England, it has been revealed, with 750 ‘organised accidents’ in the city being reported to one insurance company alone. | Birmingham has been named the ‘crash for cash’ capital of England, it has been revealed, with 750 ‘organised accidents’ in the city being reported to one insurance company alone. |
A total of 3,000 fraudulent claims were made to Aviva in 2015, a quarter of which came from Birmingham. | A total of 3,000 fraudulent claims were made to Aviva in 2015, a quarter of which came from Birmingham. |
The firm said the capital city was also a hotspot for bogus claims, with North London coming in second to Birmingham and East London following close behind. | The firm said the capital city was also a hotspot for bogus claims, with North London coming in second to Birmingham and East London following close behind. |
Fraudulent crashes are usually ‘induced accidents’, where a fraudulent driver targets innocent motorists in order to claim whiplash compensation. | Fraudulent crashes are usually ‘induced accidents’, where a fraudulent driver targets innocent motorists in order to claim whiplash compensation. |
They also include 'staged’ crashes, where two drivers purposely crash into each other and make it look like an accident. | They also include 'staged’ crashes, where two drivers purposely crash into each other and make it look like an accident. |
Aviva say one in nine whiplash claims submitted to the company are fraudulent, with 17,000 suspicious whiplash claims currently under investigation. | Aviva say one in nine whiplash claims submitted to the company are fraudulent, with 17,000 suspicious whiplash claims currently under investigation. |
It says the number of staged crashes in the UK has fallen 40 per cent since 2014, thanks to tougher “fraud prevention tools” preventing fraudulent customers from accessing their products. | It says the number of staged crashes in the UK has fallen 40 per cent since 2014, thanks to tougher “fraud prevention tools” preventing fraudulent customers from accessing their products. |
Induced accidents, however, have only fallen two per cent, prompting concerns over the safety of innocent motorists. | Induced accidents, however, have only fallen two per cent, prompting concerns over the safety of innocent motorists. |
Tom Gardiner, head of fraud at Aviva, said: “We remain very concerned that fraudsters continue to put their own greed ahead of innocent motorists’ safety. | Tom Gardiner, head of fraud at Aviva, said: “We remain very concerned that fraudsters continue to put their own greed ahead of innocent motorists’ safety. |
“Our figures show induced accidents now account for nearly half of all organised motor fraud we detect.” | “Our figures show induced accidents now account for nearly half of all organised motor fraud we detect.” |
Mr Gardiner also said bogus whiplash claims put strain on public resources by wasting police, hospital and ambulance time. | Mr Gardiner also said bogus whiplash claims put strain on public resources by wasting police, hospital and ambulance time. |
In his 2015 autumn statement, Chancellor George Osborne pledged to reform the “compensation culture” surrounding minor motor accident injuries. | In his 2015 autumn statement, Chancellor George Osborne pledged to reform the “compensation culture” surrounding minor motor accident injuries. |
The right to claim cash compensation for minor whiplash will be taken away, and victims can instead claim back money spent on rehabilitation and treatment. | The right to claim cash compensation for minor whiplash will be taken away, and victims can instead claim back money spent on rehabilitation and treatment. |
The Chancellor claimed reforms would “remove over £1bn from the cost of providing motor insurance”. | The Chancellor claimed reforms would “remove over £1bn from the cost of providing motor insurance”. |
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