Insurance News .com.au reports that “US insurers say they have seen a 46% rise in the number of staged accident claims in the past two years.”
The National Insurance Crime Bureau cited that from 2007 to 2009, New York City generated more than 1300 staged accident claims, with each accident potentially costing more than US$100,000 ($123,000). The trend, known as “crash for cash”, involves criminals who target other criminals (as well as innocent drivers) who are less confrontational after an accident.
Typical scenarios apparently include “four-car staged accidents on freeway exits as well as a car slamming on its brakes in front of an innocent driver while an accomplice blocks the other lane. Fraudulent doctors and lawyers then sign medical claim forms and process the claims and pocket much of the fraudulent payout.”
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