So-called cash-for-crash frauds have cost the motor insurance industry billions and it is ultimately honest drivers who have to pay that cost in the form of higher premiums. However, a High Court case in which three men involved in a staged accident were handed stiff prison sentences showed that judges are tackling the issue.
Following the purported accident on a motorway, the three workmates had between them claimed about £14,500 in compensation. They had each attempted to convince medical examiners that their injuries were genuine and two of them had signed sworn statements in support of their claims. The truth subsequently emerged, however, and the claims were withdrawn before they reached trial.
After the motor insurer who would otherwise have had to satisfy their claims brought proceedings, the trio admitted contempt of court. The Court noted that they were all previously of positive good character and that it was a one-off matter which had brought shame on them and their families. The fact that they were hard-working family men made their position all the more sad.
However, the Court noted the prevalence of cash-for-crash frauds and the huge cost to the insurance industry. Deterrent sentences were therefore required. Two of the men received six-month sentences and the other four months.
