The Government has backed a set of new measures laid out by the Insurance Taskforce (IFT) to reduce the amount of car insurance fraud in Britain. The measures include greater sharing of insurance data and closer partnerships between the insurance sector and regulatory bodies.
Tackling Crash for Crash
Crash for Cash scams, where fraudulent motorists force others to crash in order to claim insurance compensation, are a major concern in Britain. Research by the Insurance Fraud Bureau has found that Crash for Cash scams cost British insurance providers £336 million in 2015.
In response to this problem, the IFT recommends that insurance and anti-fraud organisation work closer together by sharing their data and best practices with one another. The IFT believes that the more data these organisations have, the more capable they’ll be in determining if a car insurance claim is fraudulent.
Addressing whiplash claims
The IFT, which was created by the Government back in 2015, also says more can be done to tackle a similar insurance scam centred on non-existent whiplash injuries. Whiplash claims cost Britain around £2 billion a year, and the Government has already taken certain steps to address the issue.
These steps include taking away the right to general damages for soft tissue injuries, plus increasing the upper limit for the small claims court for personal injury claims from £100 to £5,000. The IFT says more legal changes can be made to make whiplash scams more difficult and the insurance industry should be more resilient to settling for cash compensation.
The IFT has also recommended making insurance applications and claims forms easier to understand and an increase in the number of anti-fraud campaigns.