Police Launch Motoring Fraud Unit

This year sees the end of motor insurers using gender as a rating tool after a European Court of Justice ruling last March.

As previously blogged, this is likely to mean some (mainly young) women’s premiums will increase in order to fall into line with the rate men pay on average.

But premiums have risen anyway for everyone over the last few years, mainly because of the number and value of personal injury claims.

It is one feature that led to the creation of the Insurance Fraud Bureau (IFB), an organisation funded by the insurance industry that focuses on detecting organised and cross industry insurance fraud.

The IFB has had a number of successes dismantling ‘crash for cash’ crime rings and works with the police as well as the Association of British Insurers to raise public awareness.

However, the scale of the problem facing investigators is perhaps best illustrated by the creation of a second unit dedicated to cracking down on motor insurance fraud.

On Tuesday (3rd January) the City of London Police launched the 34-strong team Insurance Fraud Enforcement Department (IFED).

Its press release confusingly describes the unit as the country’s “first insurance fraud unit” and a call to its offices did not clarify how its nationwide work will differ from that of the IFB.

But there is clearly a need for dedicated crime teams to investigate insurance fraud, which is estimated to be adding £30 to all of our motoring policies.
Perhaps in time success from organisations such as the IFED, as well as the IFB, and new laws such as Continuous Insurance Enforcement, will reduce all our motor insurance costs, although the latter may have little effect.

But for the time being the feedback from experts appears to be unequivocal: prepare for rising premiums.

For further information contact Anton Balkitis or Lucy Wood on 0800 046 3066 or visit the website if you are looking for motoring solicitors.