Contrived accident landmark for QBE after sentencing in a unique case
4/27/2010The latest successful collaboration by the counter fraud teams of QBE, the specialist business insurer, and Manchester law firm DWF has seen two people given a suspended sentence and one a sentence of conditional discharge. Sentencing also included a curfew order for one of the accused and costs awarded against them.
The group were all involved in staging an accident with a hire car in Stoke-on-Trent and tried to claim thousands of pounds in compensation from QBE.
In December 2007, Christopher Colin Huson hired a Toyota Auris from Afford Rent-a-Car before staging an accident with a Honda Accord in which Azhar Ul Hassan, Raheela Khan and another man were travelling. Following the accident, Huson admitted liability and three people submitted claims for compensation.
They all claimed the "accident" happened on Trentham Road in Trentham before moving the hired vehicle to nearby Meadow Lane.
The fraudsters planned to make it look as if a car that they had hired had collided into the back of a car they owned. But the fraud was discovered following enquiries by insurance investigators and Staffordshire Police.
Tests carried out on both cars revealed collisions with masonry objects rather than each other, suggesting the car had been deliberately damaged elsewhere before the "accident" was reported.
Matthew Crane, managing director of QBE European Operations' Motor division said: "QBE works closely with all its policyholders to protect their interests and at the same time offer them an outstanding service in claims handling. In this instance, Afford Rent-a-Car were callously targeted for the sole purpose of personal financial gain. Fraudulent activities such as this have the potential to raise costs and risks for Afford Rent-a-Car and our other clients."
Crane continued: "QBE is committed to combating the ever-growing problem of fraud, and we will continue work with the police and industry bodies to achieve this goal."
Martin Stockdale, a senior solicitor at DWF who led the defence for QBE said: "Together with QBE and Afford Rent-a-Car we brought this case to Staffordshire Police and are pleased with the sentence handed out. Fraud like this is costing policyholders an estimated £40 extra onto their premiums."
Tony Moore, director of Afford Rent-a-Car commented: "We are a local business, which services local people. We work closely with our Insurers, QBE and the authorities to identify and prevent fraudulent claims. On this occasion we were ruthlessly targeted for the purpose of making a financial gain from a contrived car accident. It is instances like these that cause increases in our running costs and which has an overall effect on what we charge our genuine customers for the services we provide. We will continue to work alongside our Insurers to ensure such claims are identified and prevented. We would like to extend our gratitude to the efforts of Staffordshire Police, our Insurers QBE and their solicitors DWF."
The Insurance Fraud Bureau estimates 'crash for cash' scams cost insurance companies £350m a year.
Ends
Picture caption: Martin Stockdale, senior solicitor, DWF LLP
Notes to editors
DWF LLP is one of the fastest growing law firms in the UK. With over 1,061 people based in Leeds, Liverpool, London, Manchester and Preston, DWF provides a range of services grouped in the following sectors:
Corporate
Finance & Restructuring
Litigation
Real Estate
People
Insurance
Private Client
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Bell Pottinger North
Tel: 01625 506444 or 07810 795053 / 07920 252 464
Email: fwhyatt@bellpottingernorth.co.uk or ahenshall@bellpottingernorth.co.uk
