Insurers to fund anti-fraud unit

The insurance industry is paying £9 million to fund a new police unit to tackle increasing levels of fake claims.

The 35-strong City of London Police unit will tackle the crime by means of investigation, bringing fraud cases to trial and controlling further damage caused to insurers.

Due to the increase in fraudulent claims, motorists are facing a rise of £44 per year in theircar insurance premiums, according to the Association of British Insurers.

Fake claims, such as whiplash, costs insurance firms around £2 billion a year.

Police will focus on "cash for crash" scams where accidents are set up to generate fake claims. The team will also bring high-profile insurance fraud cases to prosecution and work on measures to stop such crimes taking place.

The anti-fraud force will also look into organised frauds involving teams of crooks that work with doctors and solicitors to fake claims.

Copyright © Press Association 2011