The Association of British insurers released figures from a study showing that insurance fraud from bogus claims on motor or home insurance policies rose to a record 840 million pounds last year.
Over 122,000 fraudulent insurance claims were uncovered last year, up 14 per cent on the previous year. The overall value of the fraudulent claims rose by 14 per cent on the figures from 2008. These bogus claims cost honest policy holders 44 pounds a year extra on their premiums.
Those with the highest by value were motor insurance claims but the most common involved home insurance with 62,000 claims detected in 2009.
There were 8,500 dishonest personal liability claims in 2009. People claiming to be injured in an entirely different manner than the true way they were hurt. Such as claiming a fall due to loose pavement when the injury really occurred when running from guards after a suspected shoplifting incident. Or claiming an injury from lifting a box on the job when the injury had occurred at home while working on the home’s roof.
Many people are turning in those that they know are filing fraudulent claims. Some are getting rewards. Nick starling of the ABI said: “Our honest customers rightly object to having to pay higher premiums to subsidise the fraudulent minority, which is why insurers continue to up their game in the war on the cheats.”