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12th May 2011, Page 14
12th May 2011
Page 14
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Which of the following most accurately describes the problem?

Criminals are targeting HGVs to induce collisions and make fraudulent insurance claims, costing insurance companies and hauliers millions of pounds

Words: Chris Tindall

HGV DRIVERS targeted by so-called crash-for-cash fraudsters are seen as easy targets, yielding criminals an estimated £30m a year, according to insurance experts.

A CM investigation has also found that the cost to truck drivers unwittingly caught up in staged collisions goes beyond the inancial impact, with one victim saying he continuously replays an incident in his mind because of how easily it could have led to the deaths of innocent motorists.

However, although insurance irms conirm that commercial drivers are at an increased risk of crash-for-cash incidents, the statistics that would measure the exact frequency and scale of the problem are only now being gathered. “We have multiple streams of data coming in,” says Glen Marr, director of the Insurance Fraud Bureau (IFB). “We anticipate a much higher frequency of HGV-related fraud being picked up.”

High-end fraud

The IFB was set up in 2006 by insurance companies to focus on high-end fraud that wasn’t being detected by individual irms. Marr says 15 police forces are working with the bureau on 253 live fraud operations. This includes a suspected multi-million-pound scam being investigated by the Metropolitan Po lice that targeted truck and car drivers.

“I have worked with insurance companies where clearly branded, well-known CVs have been targeted,” explains Marr. “Criminals will go for an easy target. It’s becoming too hard to target the average car; it’s easier to target logistics irms. Lorries will be well insured.” The IFB has published a list of the top 20 hotspots in the UK affected by crash-for-cash incidents. Although Birmingham is at the top of the list, the North-West dominates, with Liverpool, Manchester, Chester, Oldham and Blackburn all in the top 10.

“We work closely with the police,” says Marr. “70% of the people we are targeting are interesting to the police for other things: drug traficking and violent crime, for example.” In many cases, the induced collision will take place at relatively low speeds and often involve a driver of a car simply slamming on the brakes in front of an HGV, sometimes on a roundabout. But the cost of the ensuing claim is then ramped up by the fraudsters to include existing vehicle damage, as well as there being more people in the vehicle than at the time – and all suffering multiple injuries.

“The average claim is £30,000 per incident,” says Nicky Spencer, director at CV insurer Towergate. “In some instances, gangs have roped in doctors and physiotherapists, and despite there being only one person in the vehicle, ive have made claims.”

Spencer warns that missing vital signs that you have been targeted by fraud

sters can cause problems for hauliers for years to come. “We have spoken to clients who knew something wasn’t right. One we spoke to knew this guy had suddenly braked in front of her, but she didn’t know why because she couldn’t prove it. Only later did she realise it was a staged incident. But it was too late because the claim was settled and it now sits on her claims history,” he says.

Get some proof

The Road Haulage Association (RHA) says crash-for-cash incidents have been around for a while, but the problem started being seriously addressed only when insurance irms started discussing it. However, RHA security and infrastructure manager Chrys Rampley says: “There are two issues here. The irst is the insurance industry paying out and not investigating who was culpable, and this has come home to roost. But it’s the haul ier’s fault as well. If you haven’t any proof, then it’s one person’s word against the other. You must get evidence if you can.” Towergate has started itting video cameras into its customers’ truck cabs that can be relied on in suspicious incidents. Spencer says the equipment is free because it is proving effective and it could also save drivers from a inancial nightmare.

“One client’s vehicle was down and he wasn’t earning any money while the claim was being processed,” she says. “He couldn’t pay his mortgage and couldn’t see any way out of it. And with higher insurance premiums and fuel prices going up, proit is already tight. An incident like this can mean the difference between going out of business and keeping your head above the water.” ■


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