Fraudsters can damage car insurance premiums
Thu, 24 Nov 2005
The national cost of fraud could be helping to push up car insurance premiums, according to new research.
A study by insurance provider Norwich Union has concluded that the cost of UK fraud could be as much as £650 per household or 1.4 per cent of the country's total economic output.
The insurer is calling on the government and the police to do more to tackle the problem of fraud and wants a National Commission to devise a cohesive approach to the matter, especially as evidence suggests small-level fraud could fund more serious operations.
"Fraud is fundamentally fuelling the growth of organised crime in the UK, earning more from fraud than they do from drugs," said Chris Hill, head of fraud at the Norwich Union, speaking to BBC News.
He added: "The people that we are finding and identifying at the heart of these particular frauds aren't just working alongside the drug traffickers, they are the drug traffickers."
Norwich Union also expressed disappointment that many cases of insurance fraud do not reach court even though there is sufficient evidence, simply because it is not regarded as high priority. However, the growing number of car insurance frauds means that many law-abiding motorists are now being forced to pay extra in their annual premiums. 
© Adfero Ltd
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