Daily Insurance Industry News
Daily Insurance Industry News
Monday 16th of July 2018
November 27, 2008

Fightback against motor insurance fraud continues

by Richard Kilner

Story link: Fightback against motor insurance fraud continues

Law firm Dolmans has issued a stark warning that motor insurance fraud has soared by some 70% over the course of the last three years.

The cost averages out to around £5m per week, but there is good news with Dolmans stating that there are some positive indications that the increased criminality is being tackled.

The rise was detected by the Association of British Insurers (ABI) which conducted a large scale survey last year and found 24,000 cases of fraudulent claims worth a combined total of £260m.

Simon Evans, a partner at Dolmans, has said that it’s unclear whether the surge in fraudulent claims is down to better detection methods of more numerous cases, but opined it was probably both.

Insurance companies constantly try to detect fraud, he went on to say, and though the problem can never be wholly eliminated, the present levels are too high to accept.

Many view insurance fraud as a victimless crime, however, it adds around £40 on average to a typical motor insurance policy for an entirely innocent motorist.

Recently the Insurance Fraud Bureau (IFB) and police have collaborated in a successful case which saw 13 fraudsters put behind bars for a total of 10 years.

In addition to the fightback by investigative authorities, the judicial system has also started to take a harder line against fraudsters.


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