Insurance Fraud Enforcement Department getting results already.
As a result this has become increasingly important issue for the people of the UK and more importantly Manchester Withington, who suffer from being in high cost insurance postcode areas . Earlier this year as a result of fraudulent claims raising the Government started up the Insurance Fraud Enforcement Department (IFED), a department which is tasked solely with tackling the issue which costs the UK government an expected £3 billion a year.
IFED, which is based in London, is tasked with the following:
- Targeting organised crime groups which are using an increasing number of professional enablers – doctors, solicitors, vets – to expand their operations and increase the threat against the insurance industry.
- Challenging the belief that small-time ‘opportunistic fraud’ is somehow acceptable.
Amongst other things whilst working with and being supported by the Association of British Insurers (ABI).
The Transport Select Committee visited the IFED last week as a follow up to our enquiry into cost of motor insurance. IFED don’t simply tackle motor insurance fraud, but it is a major part of their work. There have already been a number of successes:
On 3 January a man had been detained in Leamington Spa after allegedly claiming £35,000 for a stolen BMW that was still in his possession.
A Hertfordshire man who in 2005 claimed a back injury had left him unable to work, leaving his insurance company with a bill running into several hundred thousand pounds. However, police are now in possession of evidence that seriously calls into question the claim and has led to the man’s arrest and IFED’s first criminal charges.
- Detectives arrested three people suspected of running an internet car insurance company that was pocketing premiums but not providing any cover, leaving individuals unknowingly driving uninsured. The action continued in week two, with the unit receiving reports from police forces across the country of a major car insurance fraud allegedly based in the Midlands. Detectives are currently assessing the intelligence before deciding whether to launch a full investigation.
- In a different case a man was arrested in Newport, Wales, after he was accused of staging a burglary in his own
home and then making a claim for £29,000 worth of electrical goods and jewellery.
- In the last few days detectives from the Insurance Fraud Enforcement Department (IFED) of the City of London Police, made three arrests in the Liverpool-area as part of an ongoing investigation into a suspected ‘cash for crash’ fraud estimated to be worth more than £1 million. IFED was assisted by Merseyside Police in the early morning operation, with search warrants also being executed at business premises in the Speke area of the city and in Widnes. The investigation was triggered after a referral from insurers who had become concerned at some of the motor insurance claims they were receiving from the north west. Two women, 44 and 32, and one man, 46, were arrested at residential addresses close to John Lennon Airport on suspicion of conspiracy to defraud. Additionally one man, 40, was arrested in the Old Trafford area of Manchester. All are currently in police custody,
Again I want to express my support to all those working for IFED, the work they do is integral to bringing down insurance costs to people around the UK.
All relevant information regarding the more in depth aspects of IFED can be found here