Crash fraud is costing the insurance industry a staggering £16 billion a year, according to a lawyer.

Howard Dean, from law firm Beachcroft LLP, who has just been appointed as head of its claims validation team in Manchester, said that the reduction of motor accident fraud was now a "key objective" for insurance companies.

Apparently the north-west is the worst place in the country for these scams, sometimes known as 'crash for cash', where drivers deliberately cause members of the public to drive into them.

Beachcroft's national head of fraud, Lorraine Carolan, commenting on the appointment of Mr Dean, said: "We're delighted to have made this appointment… our claims is already the largest specialist fraud team in the Midlands.

"I'm confident that under Howard's direction our Manchester team will develop likewise."

Last year South Norfolk MP, Richard Bacon, talking to BBC News, called on the government to take 'crash for cash' more seriously, although at the time reports of the cost to the insurance industry put estimates at a more conservative £2 billion a year.

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