Compensation claim news

Group caught making fraudulent car crash claims

A group of fraudsters making false compensation claims has been sentenced to jail terms, community orders and fines after insurance investigators were alerted to the scam.

The group, made up of 25 workers from NTL, a cable TV company now part of Virgin Media, had conspired to crash their company cars into other cars packed with passengers.

Once the NTL worker had admitted responsibility for the crash, the "victims" were able to claim the cash and split the compensation.

However, insurance fraud investigators were quickly alerted to the scam and established the car accidents never actually took place.

The prosecutor in the case said, "The beauty of this scheme from the fraudsters' perspective was that because the vehicles were owned and insured by a company fleet policy, no individual involved in the fraud was at risk of suffering personal loss or increase in their insurance premiums."

The leader of the gang was sentenced to three years in prison while the rest of the group received a variety of jail terms, community orders and fines for making fraudulent car accident compensation claims.



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*Where replacement vehicle costs can be recovered from the insurance company of the person who caused the accident. Where this person is untraceable or uninsured, or where there is a dispute over liability, a replacement vehicle cannot be provided.