In a notable victory against organised fraud, car insurance broker 1st Central and insurance law firm Keoghs have won five tort of deceit claims against a fraud ring, resulting in over £140,000 in damages awarded.
The policy hijack scam involved alleged at-fault accidents occurring far from the policyholder’s address, claimants (the supposed driver and passengers of the third-party vehicle) also residing long distances from the collision site, and a single individual reporting multiple incidents.
Partnering with Keoghs, 1st Central initiated proceedings in the tort of deceit to recover the funds paid out on the false claims. The claims advanced to trials at Manchester County Court, where the judgments favoured 1st Central and awarded both compensatory and exemplary damages.
Meanwhile, the credit scores and insurance premiums of those customers whose policy information was used in the scam will not be impacted.
“1st Central is committed to rooting out fraud and protecting our customers,” counter fraud director Paul Priestley stated. “False claims like this ultimately push up costs for everybody, with genuine, paying customers often suffering as a result.
“To keep our prices competitive and ensure that customers feel safe and valued with us, we invest heavily in anti-fraud capabilities and always take decisive action against potential scammers.
“The recent judgments in our favour vindicate this approach and represent big wins for 1st Central, the wider industry, and our customers against potentially fraudulent actors.”
Sarah Moat (pictured) from Keoghs added: “This is a fantastic achievement and resulted from excellent teamwork between Keoghs and 1st Central.
“We will continue to ensure that policyholders are protected from insurance fraud by working diligently to spot incidences of fraud and then use the full power of the courts to ensure fraudsters are brought to justice.”
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