Two conmen from Burnley have been jailed for six and five years respectively for masterminding a motoring insurance scam on what a judge called “an industrial scale.”
Last August, brothers Rezwan and Rehan Javed were found guilty of conspiracy to defraud and possessing an article for use in fraud.
The court was told that the pair had amassed a fortune of nearly £1m from defrauding insurers for dodgy motoring claims. They would get associates to drive around, stop at roundabouts and then slam on their brakes, causing shunts. The brothers would then take a sizeable cut of solicitors' referral fees, courtesy car hire and storage and recovery costs incurred in the collisions, when in many cases they weren’t warranted.
It’s thought that they both netted about £3,000 per claim from insurers.
Judge Berner blasted the pair, who ran the Burnley-based claims management company North West Claims Centre Ltd, saying: "This is not a victimless crime either in financial or human terms. Some of the targeted occupants were elderly and children. Many lost their no-claims bonus and had to pay greatly enhanced premiums. Some suffered trauma and nervous shock."
The Association of British Insurers claims that around £110 per year is added to the cost of the average car insurance policy by insurance fraud.