Industry News from Yes Insurance

Statistics from the Insurance Fraud Bureau (IFB), which is part of the Association of British Insurers, have shown Blackburn to be the car insurance fraud capital of the UK.

Bradford, Bolton, Birmingham and Oldham follow close behind but Blackburn came top with 1,710 staged accidents taking place in the Lancastrian town since 1999. Each scam can net as much as £30,000 for the conmen.

John Beadle, chairman of the IFB, stated that more needed to be done to find an effective deterrent, as the current maximum penalty of 14 years in prison, clearly wasn't enough.

"The criminal gangs targeting honest motorists are ruthless and innocent lives are being put at risk," he said.

"We must take a rigorous approach to this significant national problem which is impacting many cities across the UK and requires an urgent solution."

Sergeant Keith Jackson from the local police force told the Lancashire Telegraph: "We work closely with car insurance companies and there are a number of ongoing operations and investigations.

"We have been provided with information that people who are amenable to be involved in collisions, in which both parties are to make a claim, are putting black ribbons on the back of their cars.

"From a personal point of view, we could do with working in closer partnership with insurance companies and maybe even consider setting up a special unit or ring-fencing money, particularly if Blackburn is an area of concern," he concluded.

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