Responding to the Ministry of Justice’s (MOJ) launch of a consultation on whiplash compensation, Insurance Fraud Bureau (IFB) Director Phil Bird said:
“The IFB welcomes the MOJ’s consultation which will challenge a long-standing status quo on whiplash compensation. Improving the diagnosis standards for whiplash will help to root-out fraudsters abusing the system, but more importantly speed-up the payment process for genuine claimants with a right to compensation.
“Tasked with investigating ‘crash for cash’ fraud, all too often the IFB sees whiplash used as a method by organised crime groups to repetitively scam insurers out of hundreds of millions of pounds. Honest policyholders ultimately pick up a collective bill for fraud. The MOJ’s consultation is a welcome step forward in the evolution of measures to fight fraud.
“Protecting honest policyholders by reducing all forms of fraud is a top priority for the insurance industry. Over £200 million per year is invested in sophisticated controls including dedicated counter-fraud teams using cutting-edge technology to vet claims and a dedicated police unit bringing cheats to justice.
“But whilst the industry continues to tighten its grip on fraud, the MOJ’s consultation does recognise the importance of dispelling myths amongst the public that insurance fraud is victimless or somehow acceptable. Following the launch of the IFB’s ‘Crash for Cash’ report in November, the Bureau will continue to work with the Association of British Insurers, our industry partners and law enforcement agencies to help educate consumers on the consequences of committing fraud.”
