Fraud detection up 70% in three years, says ABI.
Insurers uncovered a record amount of fraudulent motor claims in 2007 amounting to £5m a week, says the Association of British Insurers (ABI).
Insurers exposed 24,000 cases of motor fraud worth £260 million, or £5 million every week. The number of dishonest motor claims detected has risen by 70% over the last three years.
Nick Starling, the ABI’s director of general insurance and health, said: “Insurance fraud is no victimless crime. Honest motorists pay through higher insurance premiums – an extra £40 a year on average. This is why insurers are ramping up their crackdown to weed out the cheats.
“Anyone committing insurance fraud is more likely to get caught, risks a criminal record, and will find future insurance and credit harder to obtain and more expensive.”
An example of a fraudster who was caught included a policyholder who claimed her Land Rover was damaged when her foot slipped off the brake and she hit the front of her house, when actually, the damage was intentional following an argument with her partner.
In another case, a man claimed his car had been stolen but he had pushed it off a cliff.
The ABI said dishonest motorists who see insurance as a way to clear their debts or make money are in for a nasty surprise.
In total in 2007, ABI members uncovered 91,000 fraudulent claims under motor, household, travel, and liability insurances. The total savings amounted to £557 million.
