Car insurance providers 'must tackle fraud'

Date: 11/3/2011

More must be done to address the issue of fraud committed by car insurance policyholders, the government has urged.

A report released this week by the Transport Select Committee has revealed that this type of crime is playing a significant role in driving up the cost of vehicle insurance for people in the UK.

It suggested a police unit should be set up with the specific task of tackling the problem of individuals making false personal injury claims to their cover providers - and that the facility could be paid for by the insurance sector.

"The police made plain to the committee that 'staged accidents' are on the increase and that, so far, we have been lucky there have been no fatalities resulting from such incidents," said Louise Ellman, Chair of the Transport Select Committee, adding that without rapid action "luck may run out".

Responding to the news, the British Insurance Brokers' Association said it was pleased with the committee's recommendations.

Meanwhile, Neil Greig, the Institute of Advanced Motorists' Director of Policy and Research, said he agreed with Junior Transport Minister Mike Penning's claim that post-test training is the best way to improve road safety.

Posted by Sarah Bailey