How do accident management companies become involved in accident claims?

In your recent Saturday columns there has been a number of references to the disturbing practices of accident management companies, resulting in high cost claims for car hire and medical expenses in accident insurance claims. How do they become involved in these incidents? Do they seek business direct with a possible victim, perhaps promising more rewards than a normal insurance claim would attract? Why don't the insurance companies dispute what appear to be such outlandish claims. What can one do if involved in an accident claim to avoid their depredations?

One can only hope that there will be an antidote somewhere, similar to the offer of a small sum to a clamping company for a minor breach of contract where an outrageous sum has been sought, as quoted in your column.

Asked on 14 October 2010 by Ronald Sault

Answered by Honest John
Somehow, staff at insurers and brokers leak details of the crashes and those involved to them. I can't work out if insurers themselves take a rake off from this (which would be detrimental to the company) or if staff are taking bribes, or if the investors who own some of the brokers also own the credit hire operations and take two bites out of the same compulsory cherry.

Other insurers are disputing these claims. We had a recent case where a reader has been left with a bill of some £27,000 as a result. Of all the semi-legal crimes and rip-offs, Nick Clegg should be turning his attention to this one. I've been at it for about four years, but no one who can actually do anything about it has woken up. Perhaps because they are getting a rake-off too.
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