GO PRO for just £50 at PRFire.com

UK Car Insurance Fraudulent Car Insurance Ring Forced to Pay Damages

Posted 2nd February 2010.

It has been all too easy for drivers to purchase a car insurance policy despite holding previous convictions that would instantly invalidate a claim in reality. However, stringent checks are yet to come in place as the driving community and the car insurance providers themselves seek to find common ground.

Nevertheless it appears that fraudsters are now being given justly firm treatment from the law. An organised ring of crash for cash UK car insurance fraudsters have been ordered to fork out £400,000 after a ruling from the High Court.

The 57-strong insurance ring staged up to 30 accidents in an attempt to recoup insurance claims and pocket the cash. Seven car insurers, including Direct Line and Aviva, have since clubbed together to sue the fraudsters and recompense drivers caught up in the scam.

Kate Lotts, director of specialist claims at Direct Line, said: This is a milestone victory against a well-organised fraud ring.
This is just one clear example of UK car insurance fraud, but there is a feeling that more needs to be done to continue to control such potential issues in the future.

Mr Justice Holman said: This was not a case of contrived accidents where two people seek to arrange an accident to defraud an insurance company. Ordinary members of the public were used as pawns. The court needs to send a clear message to those who engage in conduct of this nature that this will not be tolerated … and this award of exemplary damages is entirely appropriate.

CompareInsurers.com is managed by a team of car insurance professionals and car enthusiasts. Our aim is to enable you to find all the information you need to get a competitive UK car insurance quote. With over 50 UK motor insurance providers, you can be sure of finding the quote and the information you need.