Insurance scam discovered by police

Kingston.

The Jamaican police have uncovered an emerging insurance scam which criminals are using to bilk local companies out of millions of dollars.

Insurance company executives and police investigators say the scam is being perpetrated by a "very organised" group of persons, who pay individuals to make false reports claiming that they were passengers in motor vehicles which were involved in legitimate crashes.

According to one senior investigator, these 'victims', who usually complain about whiplash and other injuries common in crashes, are paid as much as $1 million by the insurance company to settle their claims.

"We don't know how they get the information (about the legitimate crashes) …. This is something new to the police," the senior investigator said.

The Insurance Association of Jamaica (IAJ) confirmed that it was aware of the practice, which it says drives up the cost of insurance for "all the innocent people and all the good drivers".