A 43-year-old man who fraudulently claimed his BMW was stolen and driven into a tree to make a bogus insurance claim, avoided prison.

The defendant, who has not been identified, admitted one count of fraud by false representation in a landmark case which was the subject of a joint investigation by Essex Police and an insurance loss adjuster.

Claims Management & Adjusting Ltd (CMA) was brought in to investigate an insurance claim relating to a BMW M135i which had apparently been taken in a keyless car theft and crashed into a tree.

Essex Police had already found the car when the man falsely reported it stolen – and was immediately issued with a criminal record. This was then used to make an insurance claim, which the CMA was asked to review on a technical basis.

The applicant appeared at Basildon Magistrates’ Court on October 14 where, due to a guilty plea and “strong personal mitigation”, his 12-week prison sentence was suspended.

He must, however, undertake rehabilitation work and pay £1,159.45 to insurers in compensation.

Philip Swift, a former police detective and now technical director at the CMA, said: “Without giving too much away, there were aspects of the claim that immediately raised the alarm.

“A keyless theft generally indicates professional criminal involvement, while wrapping your newly acquired property around a tree suggests just the opposite.

“Although the suspended custodial sentence is lenient in our view, we thank Essex Police for what is yet another great result.

“This case is a perfect example of the modern insurance industry and law enforcement working in partnership. It’s a sign of things to come and should serve as a warning to anyone considering making a bogus car insurance claim.

“The crime reference number is no longer your golden ticket to a guaranteed payout.

“Our unique methodology is based on Kent Police’s 20-year-old Project Igneous initiative, which revealed that up to 30% of vehicle theft claims are likely to be fraudulent in some way.

“On behalf of the UK insurance industry and honest drivers, we are identifying increasingly suspicious claims, providing much-needed support to our overstretched police forces.”

Pictured: Basildon Court (via PA Images)