The most recent scams revealed
The ABI's recent report on the cost of insurance fraud revealed that undetected fraudulent general insurance claims now totals £1.9bn a year. That's an increase of 24% from £1.6bn according to the figures.
Scams including the withholding of information about a speeding conviction, listing the wrong address for a motor insurance policy and fraudulent accidental damage claims made on home insurance policies are estimated to cost £5.2m every day, adding, on average, an extra £44 a year to every household premium.
The ABI released details of some of the cheats exposed recently. They include:
- A policyholder who claimed for the theft of DVDs that he said had been bought locally, despite the fact that they had yet to be released in the UK.
- Similarly, a man who claimed for damage to a 42-inch LCD TV had his claim rejected as he said he purchased it before it actually came onto the market.
- A woman that claimed for the theft of her campervan, even though it had been written off beyond repair ten years previously.
- A personal injury claim that was exposed when the claimant was filmed driving and shopping, despite his assertion that he was virtually housebound.
- A claimant that was found in contempt of court and fined £2,500 for inflating a claim of damages for personal injury.
Independent opinion research commissioned by the ABI into public attitudes towards insurance fraud also revealed that:
- 16% would not rule out making an exaggerated insurance claim.
- Just over four in 10 (44%) think it acceptable or borderline behaviour to increase the value of an item when claiming. Three in 10 feel the same way about overstating the extent of any damage being claimed for.
- Those in the North East and the West Midlands appear the most tolerant towards insurance fraud. One in four in the North East would not rule out making a fraudulent claim. And more people in the North East and the West Midlands see inflating the value of an item, or adding an item to a claim, as acceptable or borderline behaviour than elsewhere in the UK.
Insurancetimes UK
