Norwich Union: Fraudulent motor claims rising
Motor insurance giant Norwich Union has warned that car insurance fraud is on the rise because of the credit crunch.
Research by the insurer found motorists trying to reduce premiums by declaring false information to their insurance firm when taking out a policy.
However, Norwich Union warned that insurance granted on false premises is invalid, and added that the cost of fraudulent underwriting – which amounts to £1.6 billion per year – is passed on to honest drivers.
Averaged out between honest motorists, this adds £50 to £60 onto every policy taken out in the UK.
The main types of fraudulent information given are incorrect no claims discount, a false address, not declaring accidents or convictions, and giving lower annual mileage than is actually driven.
Norwich Union’s director of motor pricing, Simon Warsop, said it is ‘essential’ that customers give accurate information when taking out a policy to ensure they are covered if they ever need to make a claim.
Category: Car Insurance News, Insurance News, Norwich Union Insurance News
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