Staged Motor Accidents

November 2006

The following advice was sent on to us by Cindy Webb, now safely returned from Qatar but still awaiting a replacement windscreen after taking their Knauss motorhome to Iceland via Scotland, Orkney, Shetland and the Faroe Islands.

Based on a bulletin by Canterbury University's insurance brokers, the piece is said to have originated from: Lorraine Braddon, Secretarial Assistant, University Solicitor's Office, Canterbury Christ Church University.

"In recent weeks the issue of staged motor accidents - in which criminal gangs deliberately cause vehicles to crash to generate fraudulent insurance claims - has received national media attention. The Motor Risk Manager for Norwich Union Risk Services, Bill Pownall, has issued some very useful advice on the subject.

An induced accident occurs when fraudsters effectively force a randomly selected vehicle to crash into the back of their own vehicle, in order to submit fraudulent injury claims. Both Heavy Goods Vehicles and private cars are being targeted by the fraudsters.

Gang members either hire or purchase and insure low value vehicles and then effectively force innocent members of the public to crash into the rear of them.

By 'inducing' an innocent driver to collide, fraudsters are relying on acceptance of liability by the innocent driver's insurer. Multiple false claims are subsequently submitted for injuries to the driver and multiple fictitious passengers.

The average insurance bill per induced accident is £25,000 to £30,000, and the 2005 total cost to the insurance industry was estimated to be £200m.

'Blinking' - The fraudster disconnects their brake lights and drives around busy roundabouts/slip roads looking for potential victims. Once a victim is selected, the fraudster drives 8 to 10 feet in front of the target and brakes sharply. Sometimes an accomplice in another vehicle will distract the chosen victim, by using their horn or flashing headlamps, to help facilitate the crash.

'Roundabouting' - Fraudster stops at a busy roundabout and waits for a potential victim to pull in behind them. The fraudster then pulls quickly onto the roundabout, but stops 8 to 10 feet over the line. Usually, the potential victim's attention will be focussed on checking for traffic emerging from the roundabout to their right, as they themselves pull out.

Consequently, they are unlikely to be aware of the stationary vehicle positioned directly in front of them, until after a collision has become inevitable.

'Russian Method' - As a slight variation on the scam, the vehicle in front of you may slam on the brakes when a third vehicle overtakes them at speed and cuts them up for no obvious reason. In fact the overtaking vehicle may well be part of an organised 'tag team' who are colluding in order to provide a credible 'cover story' as to why the vehicle in front was forced to brake.

The 'accident' occurs when the vehicle directly in front stops dead unexpectedly and for no obvious reason - usually upon entry to a roundabout or road junction.

Induced accidents are an intentional act by the driver of the other vehicle, intended to take you by surprise at a time when you would not expect the other car to stop, with the aim that you will drive into the back of their car.

The vehicle in front reverses into you and then denies it.

If an 'accident' is pre-planned you may note some unusual events prior to the collision, including:

The occupants in the vehicle in front of you may be turning around and looking at you out of the rear window; they may be looking to ensure that the trap is ready to be sprung.

The occupants may gesture to their driver seconds before the vehicle stops dead in front of you. This could be the signal for the driver to slam on his brakes.

The vehicle ahead may navigate the same roundabout several times. This may be a sign that they are looking for a suitable vehicle to target as a potential victim.

The vehicle with which you have just collided does not stop at the scene of the accident, but drives on. The driver subsequently returns on foot to the scene of the accident. In an induced accident scenario, this may be done in order to prevent you from inspecting the actual levels of damage to the fraudster's vehicle. Or to prevent you from ascertaining the number and identity of passengers (if any) present in the vehicle. The driver of the vehicle you have run into appears well prepared, with written details of their name, address and insurer, ready to give you.

Witnesses appear from nowhere, and corroborate your liability for the accident.

The vehicle with which you have just collided does not show any signs of stopping, eg brake lights not being illuminated.

In any crash (regardless of whether it is a potential induced accident or not) the standard advice to drivers is not to admit liability at the scene of the accident. The basic rule of thumb is that it is OK to say sorry, but don't admit you are at fault - you may well not be.

Also: Do not confront the other party or take any action that you feel might place you at risk.

Call the police from the scene and report the accident. Invite the other driver to remain with you until the police arrive.

Be vigilant at the scene and aim to:

a) count the number of occupants in the other vehicle

b) if possible, ask for the names and addresses of all people present, including any reported witnesses, together with the make, model and registration of the vehicle you have collided with, and also establish who the owner of the third party vehicle is

c) note the insurance details of the driver of the other car, ensuring if possible that this is recorded by you from what the other person tells you, not by asking them to write it down

d) if possible make a mental note of any distinguishing features of the driver/ passengers. This could be useful evidentially in disproving subsequent insurance frauds

e) take photographs of the scene - if you are able to without risk of confrontation (eg using a phone camera)

f) record details of the location and extent of damage to the other car - the more detail, the better

g) commit to writing the fullest possible account of the incident and all related details, as soon as possible after the accident

h) report any concerns to your broker or your insurance company

Proceed with caution when approaching roundabouts. Do not look for a gap in the traffic on the roundabout until you are at the give way line. Then ensure your path immediately in front is clear, before pulling onto the roundabout. Do not assume that drivers in front of you will pull away on entering the roundabout.

** Watch your speed when approaching roundabouts, junctions and slip roads.

** Just sticking to the speed limit will help reduce your risk.

** Be vigilant when driving, and maintain awareness of your surroundings at all times.

** Do not assume that other drivers will always act rationally.

Above all, your best weapon is driving defensively, maintaining a safe distance between yourself and any vehicle in front to enable an emergency stop to be made if necessary.