The insurer says it has seen a 21% increase in organised fraud over 2013, contributing to the record number of fraudulent motor claims. More than 50% of Aviva’s motor injury claims fraud is now organised in nature and the insurer now has over 6,500 suspicious injury claims linked to known fraud rings.

Aviva also highlighted the worst-affected areas for crash for cash, revealing that Birmingham and Greater London are the UK’s crash for cash hotspots – in fact fraudulent motor claims in Birmingham postcodes detected by Aviva totalled more than £4.7m through August this year.

In the past, the northwest – particularly Manchester – has been the focal point for crash for cash activity. However, a number of successful operations and prosecutions in that area, as well as the expansion of organised fraud in other areas of the UK, is changing that picture.

Top 10 Postcodes for Crash for Cash by number of accidents:

• Birmingham (B)
• Luton (LU)
• North London (N)
• Manchester (M)
• Leeds (LS)
• Uxbridge (UB)
• Harrow (HA)
• North West London (NW)
• Bradford (BD)
• Slough (IG)

To combat the rapid growth of crash for cash, Aviva is asking the Government to look at treating minor whiplash injuries with rehabilitation, instead of cash compensation. Aviva believes this would remove the motivation for fraudsters to deliberately cause accidents in order to make a claim, as well as protect innocent motorists and help keep premiums low for customers.

Tom Gardiner, head of claims fraud for Aviva’s UK and Ireland General Insurance business, said: ‘Crash for cash is not just a financial problem – it’s a serious social problem. No other form of insurance fraud puts the public at risk of serious injury.

‘The fight against fraud begins with an effective deterrent. In addition to more prosecutions and stronger sentences, we need to remove the financial incentive for minor whiplash claims like those claimed for by serial crash for cash fraudsters. We are asking the Government to consider compensating short-term whiplash with rehabilitation, instead of cash. Would crash for cash exist if there was no money in it? We don’t think so.’

Gardiner continued: ‘We are urging motorists to remain alert to crash for cash, especially in those areas where we know this is a problem. As our data shows, innocent motorists are put at an increasing risk from professional fraudsters which is why we’ve published advice to motorists to help them prevent getting caught up in this dangerous act.’

Commenting on the news, the RAC said that so-called “dashcams” can help catch the fraudsters.

RAC head of external affairs Pete Williams commented: ‘With “crash for cash” crimes unfortunately becoming more prevalent on UK roads, motorists are looking to in-car cameras to protect themselves from being taken advantage of. Accident cameras or in-car cameras are commonplace in some countries where unscrupulous driving practices are a more regular occurrence.

‘As long as they are used correctly, dashboard cameras are a valuable record of the circumstances that occurred around an accident and as such can help to reduce the cost of personal injury claims which, in turn, should ultimately reduce the cost of insurance.

‘Making in-car cameras compulsory would come at a cost initially, but they could pay for themselves in the long run if they cut the nation’s premiums. When used in conjunction with a telematics “black box” they can also provide accurate information of driver behaviour to help customers and insurers to deal with claims more quickly.’