21 January 2005

Database launched to trap cheating motorists

A national database has been launched to help insurance companies catch motorists who make fraudulent motor insurance claims.

The database, which is being run by vehicle information experts HPI, will contain details of all vehicles written-off following an accident, as well as those reported as stolen. The new system, which will replace the Motor Insurance Anti Fraud and Theft Register, will contain details of over six million claims made against vehicles.

The database will help to identify fraudsters who insure their vehicle with several insurers at the same time and they try to make several claims, following a genuine or staged accident or by reporting the car as stolen.

The new system has already caught several people, including a man who insured a Fiat car with 11 different insurers and tried to claim from each one, following an accident he had caused himself. If his scheme had worked, he would have collected £34,000 for a car only worth £1,000.

Commenting on the new database, Justin Jacobs, Head of Motor and Risk Pricing at the Association of British Insurers, said: "Dishonest motor insurance claims are paid for by honest customers – this is why insurers are determined to stamp them out. The development of this new database shows the industry's commitment to sharing information with the common aim of reducing insurance fraud. Not only will it help detect more motor insurance fraud, but it will act as a strong deterrent, making anyone thinking of cheating on their insurance, think twice."

(KMcA/SP)