Compensation news

Gang caught out for false car accident compensation claim

Members of a gang who staged a car crash in a bid to make a claim for car accident compensation have narrowly escaped receiving prison sentences.

The five friends organised the crash, which involved a taxi driving into the back of a car, in December 2009.

The vehicles involved had been driven by two members of the group who later contacted their insurers asking for £16,800 in compensation.

It has also been revealed that the two men pulled a similar stunt a year earlier after purposefully driving into a woman's car and causing potential personal injuries to other motorists.

Although they claimed this incident had been a genuine accident, the £9,645 claim for damages was flagged up as fraudulent by the insurance firm.

The group all pleaded guilty to different counts of conspiracy and fraud. As punishment for their car accident compensation scam they were given suspended prison sentences and have been ordered to carry out community service and pay court costs.



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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.