'Cash for crash' trials begin

* Around 40 people accused * Cause crash, then claim insurance * Industry says scams costs it 1.5bn a year...

'Cash for crash' trials begin
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Jim Holder
18 Jun 2008 09:31

Around 40 people accused of 'cash for crash' fraud are due in court this week.

They are said to have deliberately caused accidents by braking hard in front of innocent drivers, who are then deemed to be at fault.

The fraudulent gang then submit invoices for vehicle damages and make personal injury claims to insurance companies.

Most of the cons are said to have taken place around Luton.

The Insurance Fraud Bureau (IFB), which was set up by insurers last year to deal with fraud cases, says that bogus and inflated claims like those from deliberate accidents cost the industry more than 1.5 billion a year.

They say this adds 5% to the average insurance premium.