Cash for crash fraudster jailed
A "crash for cash" fraudster who lived the high life on the proceeds of staged accidents and cost the insurance industry £1.6 million has jailed.
Mohammed Patel, 24, charged £500 a time to stage accidents which enabled fraudsters to claim an average of £17,000 from insurers.
He staged at least 93 crashes, earning himself around £46,000, Manchester Minshull Street Crown Court heard.
Patel, of Nottingham Drive, Bolton, Greater Manchester, admitted one count of conspiracy to defraud, six counts of dangerous driving and four counts of driving while disqualified.
He has been jailed for four-and-a-half years and banned from driving for three-and-a-half years.
"Crash for cash" scammers earn an average of £16,000 per "accident", according to the body set up to combat this type of fraud.
Richard Davies, deputy chairman of The Insurance Fraud Bureau (IFB), estimates that the fraudulent "crash for cash" claims submitted amount to £350 million a year.
He said: "Crash for cash is an exceedingly common problem. Back in 2006 it was worth around £200 million a year. You can make serious money from this. You can make an average of £16,000 per accident on this scam."
Mr Davies said that typically, the staged accident involved a low speed collision and the "victim" who has been shunted claims for personal injury, vehicle damage and replacement vehicle hire.
He said: "The crash may have involved a car with just one person in but by the time the claim is put in the number of passengers jumps."
Claimants often use the services of an accident management company (AMC).
Mr Davies said that some AMCs provide a complete service to the claimant, from arranging their car hire - the cost of which often exceeds the value of their own car - to coaching them in what to say to a doctor.
He said: "We often find that the car hire company is related in some way to the accident management company. There's a gap that needs to be examined."