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Bogus Insurance Claims Soar Amid Increasing ‘Cash For Crash’ Scams

‘Cash for crash’ and organised fraud are causing the number of bogus insurance claims to soar.

Some 14,000 fraudulent insurance claims worth £95million were made in 2014 – equivalent to 39 every day, according to figures from insurer Aviva.

It is estimated that one in nine whiplash claims could be false, and motor insurance application fraud is also on the up, with more than 6,300 cases last year alone.

This includes putting wrong information on a policy, such as a different address, or misrepresenting claims history or convictions.

One group of fraudsters in Norwich set up hundreds of fake policies and was responsible for 157 claims with an estimated value of £3million. They were all declined.

Tom Gardiner, head of fraud at Aviva, says: ‘Fraudulent motor claims put innocent motorists at risk of harm and push up the cost of premiums for everyone.’

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