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16:37 GMT, Wednesday, 15 October 2008 17:37 UK

Two held over accident claim scam

Two men have been arrested in London on suspicion of being at the centre of a multi-million pound scam involving fraudulent vehicle accident claims.

Police are investigating so-called "cash from crash" offences involving false accident and personal injury claims made to insurance firms.

An investigation was started eight months ago when insurers found irregularities in claims being made.

The two men, aged 23 and 30, were arrested on Wednesday.

Detectives believe a 23-year-old director of an accident management company earned £40,000 from each claim.

Courtesy cars

He was arrested on suspicion of conspiracy to defraud insurance companies.

The other man was later arrested after he went to an east London police station.

Accident management companies offer to help drivers who have been involved in a collision that was not their fault.

They deal with everything from settling insurance claims to arranging courtesy cars while the damaged vehicle is being repaired.



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