Fake claims

The ABI's latest fraud figures prove that people are more than williing to use their insurance policies as a way of bringing in some extra cash when times are tough.

Here are some the most interesting fraudulent insurance claims made last year:

Household insurance

A customer’s coal fire exploded, showering her living room carpet with coal, but causing no damage. Several weeks later she claimed under her household policy for a large burn mark on her carpet, which it is alleged was caused by the explosion. However the burn was under her sofa. When asked to explain how a large ball of flame travelled past her and lodged under the sofa, the claim was withdrawn.

Bogus or exaggerated injuries

A man received £9,000 in compensation for a broken angle he claimed resulted from tripping over a pothole. However, further investigation revealed that the injury was actually incurred while playing football. He was jailed for nine months.

A woman reported her husband for exaggerating his injuries following a car accident hours after he left her having collected a £385,000 compensation settlement.

A keen amateur footballer claimed to be unable to work following a back injury. His fraud was exposed when a local newspaper carried his picture after he was named as his football club’s player of the year.

Fake vehicle theft

A policyholder claimed that his car had been stolen from a car park. The car was found at the bottom of the cliff, with no signs of forced entry. A local newspaper carried a picture of the car at the bottom of the cliff two days before the alleged theft. The policyholder admitted that he had pushed the car over the cliff, and planned to use the insurance payout to pay of his debts.

Deliberate damage

A claim for replacing a lounge suite following accidental spillage of paint was rejected when forensic tests showed that the paint had been deliberately applied.

Medical costs that are not covered

The ‘recovery expenses’ claimed by a man following an illness while holidaying in West Africa, were declined, as they were for ‘services’ at a local brothel!

For a breakdown of insurance frauds in 2008, click on the table on the right (Fraud detected in 2008).

See also: ABI warns fraud costs up 30%