Detecting Fake Motor Insurance Personal Injury Claims

By Cliff

Earlier this summer Aviva reported that it had detected a 5.4% increase in the value of fraud from 2017 insurance claim cases. ‘Crash for cash’ and fake whiplash insurance claims accounted for 66% of all detected fraud.

Aviva works proactively to identify fraudulent cases each year and refuses to pay them, which helps to keep premiums down for genuine customers. Motor insurance represents two-thirds of the total value of fraud detected, which grew by £9 million between 2016 and 2016. Aviva now rejects one in eight whiplash claims it receives, labelling them suspect or fraudulent.

At the end of May 2018 the insurer was investigating nearly 17,000 personal injury claims for suspected fraud.

We welcome the Civil Liability Bill’s progression through Parliament. When it comes into force, it will reduce financial compensation for minor personal injury claims such as whiplash. Similar policies have already been put in place in other countries. This will also help to relieve upward price pressure on motor insurance policies.

The new law will also remove the incentive for companies to cold-call and text people chasing insurance claims.

Tom Gardiner, Head of Fraud at Aviva UK Insurance, commented: “Whilst it’s good news that the number of accidents is falling, we are still detecting more fraudulent claims than before. Whiplash fraud continues to present the biggest threat to customers – not just in terms of pushing premiums up, but by fraudsters putting innocent motorists at the risk of real harm by deliberately causing accidents to make bogus whiplash claims.

“Change is urgently needed. The proposed Civil Liability Bill will deter fraudsters from pursuing their campaign of ‘crash for cash’, simply to line their pockets. The good news in the meantime is that we are all detecting, disrupting and prosecuting more fraud.”

Last year, Aviva helped to bring 68 successful criminal prosecutions for fraud, carrying 143 years of prison sentences.


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