A taxi company in the North East has installed internal and external CCTV across their entire fleet to prevent fraudulent whiplash claims and increase security.
Owner of the firm C&D taxis, Chris Waterstreet, decided to take measures after seeing the firm’s insurance premiums double over the last three years.
He told FleetWorld that he expects to recover the cost of installing the cameras in just one to two years because of savings the company will make on insurance.
Mr Waterstreet said: “I won’t get bogged down with lengthy and expensive investigations when someone makes a claim and hopefully my insurance premium will stop rising each year. At the moment when someone makes a claim, we have no evidence to find out the truth and my insurance company always has to pay out. One insurance company is knocking £500 off taxi insurance premiums if you have CCTV installed. My colleagues and customers will feel safer when I have these cameras in.”
The CCTV will help prevent staged accidents such as the “crash for cash” scam in Liverpool which saw three men convicted. The cameras will also increase safety in cabs, providing evidence where allegations such as assault and abuse are made, helping passengers and drivers feel more secure.
Paul Hinchliffe, Managing Partner at Bott & Co said: “It’s a shame that this taxi firm has had to go to these lengths in order to bring their insurance premiums down. The CCTV will not only help prevent and provide evidence against fraudulent claims, but also help provide evidence for the majority of claimants, who are genuinely injured in collisions through no fault of their own. I hope the firms does see their insurance costs go down, but it’s possible they may not see the reduction they hope for, because of insurers’ tendency to over exaggerate the real cost of insurance fraud to premiums.”