Car insurance: Crash-for-cash gang ordered to pay damages

Wednesday, 03 February 2010

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A gang of fraudsters who staged slam on accidents in and around Manchester to claim money on car insurance policies have been ordered to repay more than 400,000 Pounds to their victims.

In a landmark case, the 57-member ring was ordered to reimburse more than seven insurance companies £300,000 to cover their losses along with £92,000 as punishment.

The gang staged more than 30 accidents in the north west and Mr Justice Holman said that the punishment reflects the severity of the crime.

"Ordinary members of the public were used as pawns. The court needs to send a clear message to those who engage in conduct of this nature that this will not be tolerated and this award of exemplary damages is entirely appropriate," he stated.

According to the Insurance Fraud Bureau, fraudulent car insurance claims are adding around £40 a year onto every premium as the number of "crash-for-cash" scams increases.ADNFCR-3010-ID-19594606-ADNFCR

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