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Car insurance fraudsters ordered to pay £400k damages

03 Feb 2010

Posted by Jonathan Walker

A group of car insurance fraudsters has been forced to pay its victims almost £400,000 in compensation following a landmark case in the High Court.

The "crash for cash" scammers staged accidents where they suddenly hit the brakes at a junction or roundabout causing the innocent driver in the car behind to plough into the back of them.

They then claimed the cost of the repair or replacement of their vehicles on the victims' car insurance policies.

But a consortium of seven UK motor insurers hit back against the 57-member criminal ring, suing them to recover losses and compensate innocent customers.

Mr Justice Holman said: "Ordinary members of the public were used as pawns. The court needs to send a clear message to those who engage in conduct of this nature that this will not be tolerated."

Neil Greig, director of policy and research at the Institute of Advanced Motorists, recently suggested that the compensation culture is driving up the cost of insurance premiums.