The insurance industry has claimed another victory against systematic organised fraud after a case against Groupama was thrown out of court.
Evidence of co-ordinated fraud was uncovered in the case of Oriakhel vs Vickers & Groupama at a two-day trial in January and will now be referred to the Director of Public Prosecutions (DPP).
The case involved a staged accident on the 17 May 2004 and following significant investigations by Groupama's specialist fraud department other claims were also detected involving their policyholder.
Giving judgement, His Honour Judge Copley not only rejected the claimant's evidence against Groupama as dishonest, but also disregarded that of all of his supporting witnesses.
Graham Gibson, claims director at Groupama, said: “This is another important victory for the insurance industry against systematic organised fraud. It is the direct result of over two year's work by our counter-fraud team.”
Although only a County Court judgement, Gibson said the decision may have a significant impact in the insurance market.
“It demonstrates an apparent appetite on the part of the courts in cases on this nature to award costs against the claimant (and his associates) and also to pass the files to the DPP for further action,” he added.
Richard Davies, deputy chairman of the Insurance Fraud Bureau (IFB) added: “As the result of some very diligent investigative work at Groupama another fraud ring has been exposed and the insurance buying public will be a little less exposed to a phenomenon that costs them £1.5bn every year. The industry will simply not tolerate such activities and is committed to protecting the premiums of legitimate policyholders. ”
