Insurance lenders uncover £2.3 million of fraudulent claims a day

Fraudulant Claims

Fraudulant Claims

Insurance lenders uncover £2.3 million worth of fraudulent claims everyday thanks to the foolish errors made by claim makers

Despite ever-increasingly sophisticated techniques used to determine bogus claims from legitimate ones, insurance companies are finding their work being done for them.

By the mistakes made by people trying to abuse the insurance system they have allowed insurance companies to uncover an average of 335 fraudulent claims every day.

According to the Association of British Insurers, the most common form of insurance fraud has come from home insurance with around 170 phoney claims a day. Motor insurance is also commonly abused with around108 fraudulent claims uncovered each day.

These fabricated claims include, supposed accidental damage to flooring and furnishings, when the damage was caused purposely.

One bogus claim made on a home insurance policy regarded the theft of DVDs which were said to have been bought locally but the titles had not yet been released in the UK.

ABI’s director of general insurance and health, Nick Starling, said: “Insurance cheats do not prosper – they can expect to get caught, face problems getting future insurance and risk getting a criminal record.

“The majority of customers are honest and rightly object to subsidising the cheats. Insurance fraud adds an extra £44 to the average UK household’s annual insurance bill.”

After collecting data on fraudulent claims for over five years, ABI said one of the most inexplicable bogus claims that they uncovered was that of a man who claimed he had been severely injured and left unable to walk after an accident.

He was later photographed in a newspaper as the highest goal scorer for his local football team.

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