Insurance Articles
Recession sparks insurance fraud in the UK
Posted by admin - 17/04/09 at 04:04:14 pmThe recession has sparked a huge jump in the number of fraudulent insurance claims, new data suggests.
More than 107,000 claims were found to be false last year – a rise of 17 per cent on 2007.
The value of the claims was also 30 per cent higher than the previous year at £730million (AU$1.5billion).
One false claim came from a motorist who reported a stolen car, only to admit later he had pushed the vehicle over a cliff, the Association of British Insurers said. The claimant had planned to use the payout to clear debts.
Another insurance cheat claimed his car had been stolen following a mugging, before investigations revealed he had actually sold it to a friend.
One instance saw a claim made by a woman for a lost engagement ring. It was queried after she extended her home insurance cover the day before to include items lost outside her home.
By value, motor insurance claims were higher, with a total of 35,300 claims made worth £360million (AU$742million).
ABI director Nick Starling said: ‘Fraud thrives in a recession. But cheating on your insurance really does not pay. The only thing you are likely to gain is a criminal record.
‘Insurers are intensifying their crackdown on insurance cheats’.
Source: www.dailymail.co.uk 16 April 2009
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