Member of Parliament for Scarborough Robert Goodwill has issued a warning to motorists over so-called "crash for cash" car crash gangs who stage road traffic accidents so as to be able to claim compensation, often for injuries such as whiplash.
While speaking to the House of Commons, the MP said that it is anticipated that the number of staged crashes seen on the UK's roads each year could be up to 2,500, from the current rate of 1,000, by the year 2010.
The Insurance Fraud Bureau believe that fraudulent car crash claims currently cost the UK economy around £1.5 billion a year, with a large proportion of this figure accounted for by whiplashcompensation claims.
Mr Goodwill spoke of the need for motorists to be aware of the car crash criminals, "There are not many crimes where someone doesn't know about it but this could be the case in these crashes," he said.Adding, "In the main it is a problem in some of the big conurbations but no-one is exempt."Motorists in Scarborough should be on their guard as to whether a minor accident they were involved in was genuine or a staged crash to pursue an insurance claim."It is important they are aware of these scams and if they have any suspicion that an accident they have been involved in is a scam they should contact the police as well as their insurance company. The scale of it is quite phenomenal."
The precise nature of the scams can vary, with some criminals staging accidents between themselves, and others catching unwitting motorists off guard so that they can then make false whiplash claims.
Jim Fitzpatrick MP, the transport minister commented that the issue was "a matter of concern that would obviously have to be monitored closely."
*A replacement vehicle can usually be supplied within 4-6 working hours, where there is an admission of liability from the other person’s insurance company. If this person is not known, their insurance details are not known, they are uninsured or there is a potential dispute over who caused the accident, a replacement vehicle cannot be provided.
