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Â£5.2 million scam uncovered

19th June 2008

Forty people have been charged over an alleged £5.2 million car insurance fraud case that involved staging vehicle collisions in Luton.

The car insurance scam - sometimes referred to as "cash for crash" - involves suspects deliberately colliding with unsuspecting cars and then claiming against their insurance for injuries.

The Insurance Fraud Bureau (IFB), which was set up by insurance companies to deal with bogus claims, pursued a two-year investigation in partnership with Bedfordshire police that culminated in the arrests.

John Beadle, the IFB chairman, said: "Staged motor accidents are on the rise and are potentially extremely dangerous.

"Not only do they cost honest drivers millions of pounds each year but they also put innocent motorists in danger."

Bogus claims cost car insurance companies up to £1.5 billion a year and are said to add five per cent to premiums.
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