Background

In August 2019, Davies’ forensic experts GBB were commissioned by Direct Line Group (DLG) to investigate two vehicles alleged to have been involved in a collision in Cheddington, Buckinghamshire. Mr Spencer took out an insurance policy with DLG, and less than two weeks later filed an insurance claim alleging that his Audi A1 Sport had been in a road traffic collision with a BMW Coupe, reportedly driven by Ms Johnson.

Mr Spencer’s claim was supported by a Claim Notification Form (CNF) submitted by a solicitor’s firm representing Ms Johnson. The firm blamed Mr Spencer for the incident and claimed Ms Johnson had suffered head, neck and back injuries. A subsequent CNF submitted by an accident management company, acting on Ms Johnson’s behalf, declared the BMW a total loss and requested a settlement of £39,750.

The investigation

Initial investigations by the fraud team within Direct Line Group quickly raised concerns. Enquiries were sent to Ms Johnson’s own insurer and they established it had not been notified of the alleged collision. It also became apparent that Mr Spencer’s accounts of the incident were inconsistent, which raised suspicions regarding the validity of the claim.

In response to these discrepancies, DLG commissioned forensic engineers GBB. After examining both vehicles and analysing data recorded on the electronic control units of the vehicles, GBB’s analysis concluded that:

1. No impact had been recorded at the time of the alleged collision.
2. Both vehicles had registered significant damage dating back as far as 2018.

Based on this forensic evidence, DLG went on to reject the claim and referred the case to the Insurance Fraud Enforcement Department (IFED).

Philip Hoyes, Director of GBB, commented: “This investigation was resolved because our expert had access to the latest technology for reading vehicle data, was able to interpret that data in the context of a collision, and then apply it alongside more traditional collision investigation techniques. This equipment requires significant investment, but with ever-increasing amounts of data being processed and recorded by vehicles it’s essential. We’re delighted that DLG were able to identify the risk and that our expertise could provide them and IFED with the information required to secure these convictions.”

Martin Milliner, Managing Director of Claims at Direct Line Group comments: “These sentences are proof that anyone looking to submit fraudulent insurance claims risk significant penalties. We are committed to ensuring that all fraudulent claims are dealt with by the relevant authorities and are delighted that these individuals have been brought to justice.

“This case highlights the relentless work of our internal teams and external partners to protect the public and stop criminals. Fraudulent claims have a huge impact on the cost of cover for innocent motorists, so it is vital the industry continues to work in partnership with law enforcement agencies to help protect the public. We would also thank IFED for their continued support and collaboration to ensure criminals are prosecuted for insurance fraud.”

Outcome

Following an investigation by IFED, both defendants pleaded guilty in February 2025 at Inner London Crown Court to fraud by false representation. The sentencing was issued on 22 April as follows:

• Ms Johnson, 37 of Harrow, was sentenced to one year and ten months imprisonment
• Mr Spencer, 27 of Watford, was sentenced to ten months imprisonment.

Fraudulent claims continue to be an issue in the motor insurance market. The latest figures show that over 45,000 such claims worth £501 million were identified in 2023, rising 8% from 2022 and accounting for 54% of the total number of bogus claims (ABI).