Monday, July 18, 2011

Crash for Cash - Panorama programme 11th July 2011

Very interesting programme on this week from the BBC Panorama team. They showed how the fraudsters in the motor insurance claims world scammed insurers out of millions each year by staging accidents.

These gangs are clever and resourceful. They rake in money for vehicle recovery / repairs / storage and then switch attention to the personal injury side of the business.

This kind of scam was first discussed on TV as far back as 1998 in a World in Action programme on ITV. At that time legal spy worked very much on the defendant (ie insurer) side of the fence and attended the Association of British Insurers HQ for a crisis meeting to discuss the strategy for dealing with these practices. What is extraordinary is that 13 years on the insurance industry is pretty much no further ahead and these gangs are still getting away with it.

The Insurance Fraud Bureau has made great headway in tackling some of the issues but generally the scammers are still winning.

The Panorama team also got stuck into whiplash claims generally saying they were a kind of "acceptable" cultural fraud  and that everyone now wants their slice. This is complete tosh ..... the majority of whiplash accident victims are very genuine. There are a minority of less convincing claimants but thats the law of averages for you.

People know their rights nowadays and have the t'internet to make legal enquiries. This boosts claim numbers considerably.

Oh and lets not forget that the insurance industry has recently been found out ..... selling on policyholders personal data to solicitors for big bucks. A practice defended by the ABI.

Interesting ..and downright hypocritical

No comments: