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IFB responds to Government whiplash reforms

23 February 2017

Insurance Fraud Bureau (IFB) responds to the Government announcement that it intends to raise the Small Claims Track limit and cap the level of damages that can be claimed for whiplash.

Ben Fletcher, Director of IFB said, “One of the reasons that organised crime groups have orchestrated ‘crash for cash’ scams for far too long is that they’re perceived as low risk and high reward. The industry has been working hard to deal with this myth and has been successful in fighting back, with over 1190 people arrested and 498 convicted.

“It’s due to the amount of money in the system that fraudsters are perceiving this as an easy target and exploiting it, netting upwards of tens of thousands of pounds. By reducing the amount of excess money in the system, we hope to see a positive effect in helping to tackle these scams, as the criminals recognise that the risks are higher and the rewards are lower than they once were.

“The effects and harm caused by these scams is wide reaching from those plagued by nuisance calls. It is also a burden on the innocent policyholder who is asked to cover the cost and the road users whose safety are being put at risk by criminals targeting them to deliberately cause a collision. In taking some of the excess cash out of the system, we hope that it will help to positively influence the level of ‘crash for cash’ fraud that we see.”

 

 

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