Fraudulent motor insurance claims worth £5 million every week

According to industry body, Association of British Insurers (ABI), dishonest drivers face a nasty surprise as detection of fraudulent claims has increased by 70% over the last 3 years.

Last year, the ABI uncovered 24,000 fraudulent motor insurance claims worth £260 million, or £5 million every week.

Nick Starling, the ABI’s Director of General Insurance and Health, said honest drivers pay higher premiums because of fraudulent claims, on average, an extra £40 a year.

The industry is clamping down and those found committing insurance fraud, risk getting a criminal record. Furthermore, they will find it difficult to obtain insurance in the future and find credit harder to obtain and more costly.

Malcolm Tarling, also of the ABI, added that it was unable to put a figure on the amount the industry was spending on dealing with fraud.

In 2006, the Insurance Fraud Bureau was established to tackle ‘cash for crash’ cases when accidents were deliberately staged for insurance purposes.

Mr Tarling concluded by saying that many insurance companies have their own anti-fraud units and information was shared through industry-wide databases to deal with these cases.

Fraudulent claims include one driver who pushed his vehicle off a cliff and then claimed it had been stolen.

Another instance includes a driver claiming for damage to her Land Rover when it crashed into the front of her house. The driver said it was caused when her foot slipped off the brake. However, the damage was done deliberately following a row with her partner.

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