Fraudster narrowly avoids jail for bogus car insurance claims as industry helps police investigate

A 43-year-old man who fraudulently claimed his BMW was stolen and crashed into a tree, in order to make a false insurance claim, narrowly avoided prison.

The defendant, who has not been identified, has admitted a single charge of fraud by false representation in a landmark case, which was the subject of a joint investigation by Essex Police and a claims adjuster.

Claims Management & Adjusting Ltd (CMA) was called in to investigate an insurance claim relating to a BMW M135i that had apparently been taken in a keyless car theft and crashed into a tree.

Essex Police had already found the car when the man wrongly reported it stolen – and was immediately given a crime number. This was then used to make an insurance claim, which CMA was asked to analyze based on some technical details.

The plaintiff appeared at Basildon Magistrates’ Court on October 14, where his 12-week prison sentence was suspended due to a guilty plea and ‘strong personal mitigating circumstances’.

However, he must undertake rehabilitation activities and pay £1,159.45 to insurers in compensation.

Philip Swift, a former police detective and now technical director at CMA, said: ‘Without giving too much away, there were aspects of the claim that immediately raised alarm bells.

‘A keyless theft usually indicates the involvement of career criminals, while wrapping the newly acquired property around a tree suggests the exact opposite.

“While we believe the suspended sentence is lenient, we thank Essex Police for what continues to be a great outcome.

“This case is a perfect example of the collaboration between the modern insurance industry and law enforcement. It’s a sign of things to come and should serve as a warning to anyone considering filing a bogus auto insurance claim.

‘A crime reference number is no longer your golden ticket to a guaranteed payout.

‘Our unique methodology is based on the 20-year-old Kent Police initiative, Project Igneous, which found that up to 30% of car theft claims are likely to be dishonest in some way.

‘On behalf of the UK insurance industry and honest motorists, we are identifying more and more suspicious claims, providing much-needed support to our overworked police forces.’

Pictured: Basildon Magistrates’ Court (via PA Images)