The Telegraph: "'Blackbox' exposes a £54,000 car insurance fraud"

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seanhaight
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The Telegraph: "'Blackbox' exposes a £54,000 car insurance fraud"

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http://www.telegraph.co.uk/finance/pers ... fraud.html
Estimates suggest that 380 fraudulent claims are made to insurance companies daily, adding around £50 to all drivers’ premiums.

Three people who fraudulently tried to claim £54,000 in damage and personal injuries following a minor car accident have had their claim rejected after a telematics device - a "blackbox" for cars - proved their claim was implausible.

The incident involved a flatbed lorry and a Vauxhall Astra. The Astra was travelling behind the lorry in slow moving traffic and ran into the back of it, hitting its tow bar. There was no damage to the lorry and minor damage to the front of the car.

The three passengers in the lorry claimed for personal injuries and damage totalling £54,000 from Aviva – the Astra driver’s insurance company.

However, the car was fitted with a telematics device, which feeds information to insurers about how, when, and where a car is driven including details on the driver’s speed and braking habits.

The data from the box, which is there to prove safe driving habits and reduce insurance premiums - showed that the claimed injuries were completely implausible.

The dispute, heard in Macclesfield County Court, was dismissed. The three claimants did not face any charges as a result of the attempted fraud. Motor fraud specialists Asset Protection Unit, which investigates accidents on behalf of solicitors, insurance companies and credit hire organisations, analysed the telematics data. It said police and insurance companies often lack the resources required to prosecute fraudsters. Insurers are increasingly encouraging driver to install telematics boxes and dashboard video cameras to help cut motor insurance fraud. Many offer reduced premiums for drivers who install the devices. This month Swiftcover.com offered customers a 10pc discount if they install a dashboard camera in their car.

The RAC is planning to launch its own camera system in June and plans to offer telematic boxes that connect to a mobile app to its two million members to record their driving behaviour. Figures show motor insurance fraud in on the increase. Estimates suggest that 380 fraudulent claims are made to insurance companies daily. False whiplash claims alone cost the motor industry at least £1bn each year, according to the Institute and Faculty of Actuaries. Aviva reported a 19pc year-on-year rise in fraudulent claims, which it says is being driven by organised gangs and a "lack of effective deterrents".

Britain's biggest insurer said it uncovered more than £110m-worth of insurance fraud last year, with the bulk of bogus claims involving motor insurance. It is currently investigating 5,500 suspicious injury claims linked to "known" fraud rings, representing an increase of 20pc since 2012. Tom Gardiner, head of fraud at Aviva, said according to industry estimates, fraud adds around £50 to the cost of all drivers’ insurance premiums. Neil Thomas, of Asset Protection Unit, said: "Motorists must be careful of opportunists who apparently escalate the severity of an incident in an attempt to profit from the situation.

"Fraudulent personal injury claims add millions to the cost of the nation’s insurance premiums. Many fraudsters prey upon vulnerable motorists in premeditated attempts to fleece them and their insurance firm out of thousands of pounds but others are simply opportunistic."

How does a telematics "blackbox" cut your insurance premiums?
As this case shows, carrying an insurer's blackbox in your car can help dismiss fraudulent claims - and help keep premiums down for all. But it can also reduce your insurance costs more directly. Aimed mainly at younger drivers when first introduced nearly 10 years ago, telematics devices cut premiums depending on how well you drive. Some sensible young drivers have reported saving as much as 70pc. The blackbox, which is around the size of a pack of playing cards, is inserted under the bonnet of your car in around an hour. It then sends data back to the insurer on whether you are adhering to speed limits, how you corner and even how fast you accelerate.

Those most likely to benefit include:
• less frequent drivers with a low annual mileage
• young drivers and inexperienced drivers

It is expected that telematics devices will be used by the vast majority of drivers in the future.
http://www.telegraph.co.uk/finance/pers ... fraud.html
Sean Haight, PhD

CrashForum.info
Site Administrator
Engineer, ACTAR #2769
Editor, Collision Publishing

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