Insurers crack down on insurance fraud
18/03/2005
Insurance companies are increasing their vigilance about insurance cheats as figures released by the Association of British Insurers (ABI) reveal a dramatic rise in the value of fraudulent insurance claims.
According to the ABI, dishonest claims now total more than £3.5 million a week, with a total of £200 million uncovered in 2004 - a 95 per cent rise on 2002.
Fraudulent claims cover all types of insurance, from home to car insurance; examples found by the ABI include staged motor accidents, in which criminal gangs deliberately stage motor crashes and claim for ensuing whiplash injuries.
The ABI insists that cracking down on fraudulent claimants will make life easier for honest policyholders.
"Contrary to what some people think, insurers are no soft targets for fraudsters, and that is good news for honest policyholders," says Chris Hannant, the ABI's Head of Financial Crime Prevention.
"Protecting honest policyholders from the dishonest minority is a priority for the insurance industry. As well as weeding out the opportunistic cheats, the industry is also tackling the more organised frauds.
"Insurance cheats not only face the increasing risk of getting a criminal record, but will find future insurance and credit much more expensive and harder to obtain."
An online quote will take less than a minute, and you can see just how much you could save.
About this policy
Sonar Direct Media Centre
- Car Insurance Industry News:
- May 2005
- April 2005
- March 2005
- February 2005