Insurer helps smash £1.5m Merseyside-based ring
Allianz has helped smash a £1.5m fraud scam, in the largest single case bought by an insurer.
Following a detailed fraud investigation by Merseyside police's crime operations unit, 25 defendants have received sentences ranging from imprisonment to community orders, with the ringleader Darren Duvall, sentenced to three years imprisonment at Liverpool Crown Court.
Some details from the case include:
Ringleader sentenced to three years' imprisonment
·7 other custodial sentences
·13 community orders
· 4 suspended sentences
· £36,500 worth of court fines; with civil action pending
The defendants had been charged with conspiracy to defraud Allianz Insurance out of £1.5m by staging fictitious traffic accidents during 2005.
This ‘crash for cash’ case is the largest case brought by a single insurance company. It is estimated undetected general insurance claims fraud totals £1.9billion a year adding on average £44 to every policy holder's insurance premium annually.
Mihir Pandya, fraud manager at Allianz Insurance, said: “This is not only a victory for Allianz, but for honest policyholders too. The sentencing shows that the courts are getting tough on insurance fraud and this decision will act as a deterrent to anyone thinking about carrying out this crime.
“Recently, insurers have been cracking down on ‘crash for cash’ scams, with a number of high-profile cases making the headlines over the past year. There is no doubt that fraudsters are becoming increasingly sophisticated in devising new ways of perpetrating fraud and avoiding detection, and the industry needs to step up a gear in its efforts to stamp this out.”
Acting for Allianz Insurance Sarah Hill, partner at national law firm Berrymans Lace Mawer LLP, commented: "This successful result highlights the importance of a co-ordinated and managed approach when tackling organised insurance fraud from both a criminal prosecution and civil defence perspective. The industry has adopted a more stringent approach to uncover patterns of fraudulent claims and achieves sufficient evidence allowing courts to deliver the message that fraudsters should be under no illusion that they will get away with fraudulent activity against insurers."
John Beadle, Board member of the Insurance Fraud Bureau comments: "This positive result sends a clear message to all those criminals involved in 'crash for cash' scams and organised fraud that the insurance industry is not a soft touch and they will be caught. It is estimated undetected general insurance claims fraud totals £1.9billion a year adding on average £44 to every policy holder's insurance premium annually.”
