Fraudster deliberately smashed up his own BMW to claim on insurance

Shamim Ali, 53, of Ipswich Road in Norwich, claimed that his car had been vandalised while he was at a party.

Damaged BMW that Shamim Ali claimed had been vandalised outside a party. (Image: City of London Police)

However discrepancies between an engineer’s report and Ali’s account raised alarm bells for his insurer, Zurich, which referred the case to the City of London Police’s Insurance Fraud Enforcement Department (IFED) for investigation.

Ali had attended a party in Ipswich on December 14 in 2018, parking his BMW 318i on a road near the property.

He contacted Zurich the following day claiming it had been extensively damaged including having both windscreens and the driver’s window smashed and a dent and large scratch left on the bonnet.

However, while an examination of the vehicle’s exterior by an engineer matched Ali’s statement an inspection of the engine revealed it had sustained a catastrophic internal failure, causing significant damage.

The damage and oil contamination to the underside of the car indicated it was being driven at the time of the engine failure.

It also suggested that Ali must have been aware of the vehicle failing, and that the internal damage could not have been caused by vandalism when the car was stationary.

An insurance inspection revealed that the BMW had sustained a catastrophic internal failure including hole to engine. (Image: City of London Police)

Temporary Detective Inspector Matthew Hussey said: “What started out as a night of festivity would soon turn into the day that Ali set himself up for a criminal record.

“It seems that Ali’s engine had failed a few months before, causing costly damage to the vehicle. Rather than paying to repair his vehicle, Ali attempted to exploit his insurance policy by alleging that the car had been severely vandalised.

“Whilst this may seem like a victimless crime, fraud like this costs honest policyholders in the form of raised premiums to cover investigation costs and losses."

Oil contamination to underside of BMW that showed it had suffered engine failure not vandalism. (Image: City of London Police)

Ali pleaded guilty at Suffolk Magistrates Court and was sentenced to 120 hours of unpaid work. He was also ordered to pay £1,200 in compensation.

Scott Clayton, head of claims fraud at Zurich, said: “The vast majority of claims we receive are legitimate, and we pay them promptly. But we also have highly effective mechanisms in place to detect bogus claims, and work closely with the police to prosecute offenders.”