Direct Line Group have secured a legal victory in what is believed to be the first ever insurance industry fraud case to be put before a jury. The case at Southwark Crown Court saw Shajeel Malik convicted of making a fraudulent claim in 2016 for an accident which had not taken place. He has received a nine-month sentence, suspended for 18 months, and was ordered to undertake 100 hours’ unpaid work for his part in setting up a fake insurance policy.

The court heard that Malik had collaborated with a third party in setting up an online policy for a Peugeot 206 using the alias name ‘John West’. Then eight days later, a claim was made through a claim’s management company called Shifty Rental Solutions, stating that the driver had been involved in a road traffic accident caused by the negligence of “John West” and that they had consequently suffered a loss.  

Whilst processing the claim, investigators at Direct Line Group became suspicious that the case was fraudulent in its entirety. Evidence suggested not only was the claim bogus, but that Shifty Rental Solutions was also a fictitious creation of Malik. While this matter had already been pursued successfully through the civil courts, Direct Line Group thought the level of fraud was so serious that it also ought to be pursued through the criminal courts.

Mike Brown, Head of Counter Fraud Intelligence & Disclosure at Direct Line Group commented, “This has been a long and complex investigation and we are delighted that the perpetrator of this fraud has been brought to justice. This is a fantastic achievement not only for Direct Line Group, but also for the insurance industry and its customers generally, as it sends a clear message to fraudsters that insurance fraud will not be tolerated.

“As a Group we have highly skilled investigators across the whole of our business, and this case shows how committed we are to identifying fraud and bringing these criminals to justice. This conviction serves as a stark warning to those who seek to commit insurance fraud and highlights Direct Line Group’s zero tolerance to insurance fraud, whilst protecting their innocent customers”.  

Working on the case with Keoghs who are a leading provider of legal and claims solutions to the UK insurance industry, this is believed to be the first insurance industry fraud case to go before a jury for trial. Over the last few years the Group has invested heavily in building future capability by supporting multiple initiatives to combat fraud. For example, their intelligence led solutions, data science and investigation capabilities have given the Group better capability to identify and successfully mitigate fraud.  This was a case where investigators were skilfully able to  trace back through all the relevant activity to uncover what was a professionally masked fraudulent activity through a scam company.

Mark Stanger, Prosecution Counsel and Head of Keoghs Advocacy commented, “It is to be hoped that this verdict and sentence sends a direct message to those who would defraud insurance companies that their activities will not be tolerated by the industry and will have serious consequences if brought before the courts. The result is a testament to all those who have handled the case in both our Counter-Fraud and Advocacy teams, working in collaboration with Direct Line Group investigators to defeat the fraudulent civil claim, investigate its true origin and bring Shajeel Malik to justice.”

ENDS

 

 

For more information please contact:

Jade Trimbee

Senior Manager

Direct Line Group

Tel: 01372 839 452

Mobile: 07825 315 931

 Email: [email protected]

Direct Line Insurance Group plc

Direct Line Group is headquartered in Bromley. Through its number of well-known brands the Group offers a wide range of general insurance products to consumers. These brands include Direct Line, Churchill and Privilege. The Group also provides insurance services for third parties through its partnership’s division, Direct Line Group Partnerships. In the commercial sector, the Group's NIG and Direct Line for Business operations offer insurance products for businesses distributed through brokers or direct, respectively.