Zurich unearths pan-European insurance fraud ring

Claims arising from “staged” accidents could potentially cost insurers $3.16 million

Zurich unearths pan-European insurance fraud ring

Insurance News

By Terry Gangcuangco

Investigations into suspicious claims conducted by Zurich Insurance and the Motor Insurers’ Bureau of Ireland (MIBI) conclude there’s an “organised and sophisticated Eastern European fraud ring” deliberately targeting them through staged accidents.

In a sworn statement by DAC Beachcroft’s David Culleton in the Circuit Civil Court, on behalf of Zurich and the Bureau, he stated the fraud ring “has generated an exposure to a potential 25 personal injuries claims”.

A report by Irish Examiner said these claims could potentially amount to €2 million in compensation, legal costs, and expenses – higher if they reach the High Court.

According to Culleton, the supposed accidents usually involved drivers who had just previously taken out insurance on old vehicles using false identities or information. He said the drivers and their cars would then become untraceable after a report is filed with the insurance provider.

MIBI’s principal role is to compensate victims of road traffic accidents caused by uninsured and unidentified vehicles. Insurance companies underwriting motor insurance in Ireland are MIBI members and contribute to funding for claims in proportion to their market share.

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