Menu
16/04/2009
Insurers Detect Record Amount Of Fraudulent Claims
Insurers are detecting record levels of fraudulent insurance claims, 2,000 every week - worth £14 million - according to figures released today by the Association of British Insurers (ABI).
However one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future, and getting a criminal record.
ABI figures show that in 2008:
"Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.
"Cheating on your insurance really does not pay "you will get caught, future insurance will be more expensive and, along with credit, harder to obtain. The only thing you are likely to gain is a criminal record," he insisted.
(CD/BMcC)
However one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future, and getting a criminal record.
ABI figures show that in 2008:
- 107,000 fraudulent insurance claims were exposed, a rise of 17% on 2007. The value of these claims, at £730 million, rose by 30% on the previous year
- Dishonest claims on home insurance were the most common, with 55,000 false or exaggerated claims detected. By value, fraudulent motor insurance claims were the highest, with £360 million saved
- 4% of all claims by value (excluding life insurance) were fraudulent, compared to 3% in 2007
"Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.
"Cheating on your insurance really does not pay "you will get caught, future insurance will be more expensive and, along with credit, harder to obtain. The only thing you are likely to gain is a criminal record," he insisted.
(CD/BMcC)
Related UK National News Stories
Click here for the latest headlines.
30 May 2014
Insurance Fraud Reaches Record High
The value of fraudulent insurance claims uncovered by insurers rose to a record £1.3 billion in 2013, up 18% on the previous year according to figures published today by the Association of British Insurers (ABI). This figure is more than double the cost the UK's shoplifting bill.
Insurance Fraud Reaches Record High
The value of fraudulent insurance claims uncovered by insurers rose to a record £1.3 billion in 2013, up 18% on the previous year according to figures published today by the Association of British Insurers (ABI). This figure is more than double the cost the UK's shoplifting bill.
17 December 2013
Competition Commission Criticises Motor Insurance Industry
The Competition Commission has made a number of recommended revisions to the motor insurance industry following a year long review at the request of the Office of Fair Trading (OFT). The commission described premiums as "unnecessarily high" for all drivers due to the complex chain of claims, blaming the cost of courtesy cars and repairs.
Competition Commission Criticises Motor Insurance Industry
The Competition Commission has made a number of recommended revisions to the motor insurance industry following a year long review at the request of the Office of Fair Trading (OFT). The commission described premiums as "unnecessarily high" for all drivers due to the complex chain of claims, blaming the cost of courtesy cars and repairs.
23 April 2012
Consumers Told To Make PPI Claims Directly
A summit will be held today aiming to shed light on the cost of using claims management companies for payment protection insurance (PPI) claims.
Consumers Told To Make PPI Claims Directly
A summit will be held today aiming to shed light on the cost of using claims management companies for payment protection insurance (PPI) claims.
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.
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.
14 January 2013
Government Outlines Flat-Rate Pension Reforms
A new flat-rate state pension is being outlined by the government today. The unified pension rate, likely to begin in 2017, will amount to £144 a week. Prime Minister David Cameron says the plans are "fair", and will likely benefit women and many lower-paid workers who otherwise wouldn’t get a good state pension.
Government Outlines Flat-Rate Pension Reforms
A new flat-rate state pension is being outlined by the government today. The unified pension rate, likely to begin in 2017, will amount to £144 a week. Prime Minister David Cameron says the plans are "fair", and will likely benefit women and many lower-paid workers who otherwise wouldn’t get a good state pension.
-
Northern Ireland WeatherThis Evening and Tonight:Showers will gradually die out during the evening. A cold night with long clear spells leading to a touch of frost in places. Light winds. Minimum temperature 0 °C.
