Fraudulent £20k motor insurance claim thwarted by telematics device

Posted on April 23rd, 2014 by James Luckhurst

Neil Thomas APUFraudsters who attempted to con motor insurance company, Aviva, out of £20,000 by fabricating personal injury claims have been thwarted by a telematics device.  The system and other techniques used by motor fraud investigators, Asset Protection Unit (APU), have again proved invaluable in curtailing vehicle related crime.

The personal injury claim was filed with Aviva after three claimants reported that two vehicles had been in collision in Liverpool.  APU assisted Aviva insurance in refuting the claim – amounting to approximately £20,000 – after anti-fraud operatives were able to prove the alleged crash had been fabricated.  The car was in fact nowhere near the alleged location of the incident.

One of the vehicles was fitted with a telematics system which can pinpoint a vehicle’s location and monitor its condition; it was determined by APU that the vehicle was over two miles away from where accident was said to have occurred. The three claimants have since ceased to seek compensation for the incident and have been added to APU’s fraud database as well as insurers’ fraud detection systems.

Anti-fraud teams such as APU have been combating an increasing amount of vehicle related crime, assisting the Police and insurance companies which don’t always have the resources to investigate every incident.  Personal injury claims have soared in the last decade, costing motorists millions in increased insurance costs. There are, on average, 380 fraudulent claims made to insurance companies daily.

The unique mix of forensic experts and former police officers at APU uses sophisticated technology, including telematics, to help detect fraudulent claims.  False whiplash claims alone cost the motor industry at least £1 billion* each year, but APU has played a key role in bringing fraudsters to justice.

Neil Thomas, Director of Investigative Services at APU (pictured), said: “In order for insurance companies to continue to offer affordable insurance, it is paramount that criminals who attempt to falsely claim be stopped. These acts are detrimental to innocent people, who end up paying more for car insurance or suffer delays to genuine claims.”

APU has been instrumental in the fight against criminals attempting to defraud motorists and insurance companies, particularly ‘crash for cash’ fraudsters. Its team of private investigators recently identified the emergence of ‘flash for cash’, which is the latest tactic criminals are using to defraud innocent motorists and insurers.