Car insurance fraudsters ordered to pay damages

Tue, 02 Feb 2010

A group of car insurance providers have joined forces to help to successfully prosecute a ring of fraudsters in the High Court.

The 57-strong group of car insurance crooks contrived accidents and claimed the repair costs on the other drivers' insurance claim .

However, the likes of Direct Line and Aviva united to take the case to the High Court, where the ring was forced to pay nearly £400,000 in damages.

Mr Justice Holman explained that this was an unusual situation because ordinary members of the public were used as "pawns" in the car insurance scam .

He said: "The court needs to send a clear message to those who engage in conduct of this nature that this will not be tolerated and this award of exemplary damages is entirely appropriate."

According to a recent report by the AA, the average quoted premium for car insurance has grown steadily over the year, adding over 18 per cent to the average premium in 2009.
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