ACCIDENT CLAIMS

 

Drivers beware of rogue claims

Suspicious claims for vehicle accidents are on the increase – but BT is on the case. It’s working with insurers and independent consultants to improve the awareness of the claims handling team – so that potential fraud cases can be challenged at an early stage.

Here, BT Fleet senior account manager Dave Rawlings outlines the problem – and talks about what BT drivers can do to ensure they are not caught up in a rogue claim.

Have you had an accident that wasn’t your fault? Maybe it wasn’t.

“This familiar question from claims agencies touting for business is unlikely to capture many incidents that are now occurring across the country - where drivers are being tricked into colliding with another vehicle in order to make a claim for damage and injury,” said Dave. “The duped driver is left feeling responsible for the accident - even though they were unable to avoid it.”

In a typical incident, most commonly at night, a vehicle will slam on the brakes when a third vehicle overtakes at speed and cuts in - giving the innocent driver no chance to avoid a collision.

“The driver is left feeling there was little he could have done to avoid the incident - but at the same time, accepts that the vehicle in front was right to stop,” said Dave.

What the driver will not realise is that the two vehicles were acting as a team - and the car in front was only able to brake as quickly as the driver was expecting the event.

“Inflated claims are then made for damage to the vehicle, a hire vehicle and injuries to the driver and passenger,” said Dave. “In some cases a baseball bat is used to increase the damage before the repairer sees it.”

Run by gangs of organised criminals, the phenomenon is spreading at an alarming rate - with claims handlers, solicitors and hire companies involved in the scam, said Dave.

“Estimates of the cost to insurers ranges from £200 million to £1.5 billion per year, potentially adding up to five per cent to private motor insurance premiums. BT liveried vehicles are a likely target, since they are known to be insured,” he said.

“Although it is not always possible to identify a rogue claim, BT is taking action to identify individual cases and patterns across the country in order that claims can be turned down. BT Wholesale Legal and Business Services (LBS) handle third party claims arising from BT vehicle accidents and have worked with insurers and independent consultants to improve the awareness of the claims handling team, so that potential fraud cases can be challenged at an early stage.”

Terry Pullen, who runs the motor claims unit for LBS, said: “Once you begin to investigate this issue the complexity of the operations are staggering. We have, with help from associates, identified one house in West London to which a number of claims have been linked through drivers, passengers and witnesses all claiming to live there.”

LBS and BT group risk management (GRM) are determined not to pay out claims where they are thought to be suspect - and have so far successfully challenged one incident where claims totalling £16,000 were made, he said. A separate incident is being investigated due to the number of injury claims resulting from a collision with a transit van - which was subsequently claimed to be a mini bus.

Andy Lister of GRM said: “We feel it vitally important to challenge suspicious claims, as we would not want BT to be seen as an easy target.

“To this extent we will, in the right circumstances, issue legal proceedings against the claimants for the damage caused to our vehicles through staged accidents. We also need to make our drivers more aware of the potential for this type of incident, so that they might mention anything odd when reporting the claim to BT Fleet.”

Drivers involved in an accident should take note and report back if:

• The accident occurs in the early hours of the morning
• An unknown vehicle caused the accident
• The third part does not want to involve police, is keen to leave the scene, or has all insurance documents to hand
• There are several passengers in the third party vehicle.

“While it will not always be possible to spot the dodgy claim, drivers are reminded to carry a copy of the accident notes form,” said Dave.