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Daily Insurance Industry News
Saturday 20th of January 2018
December 29, 2010

Home insurance main target for fraudsters

by Gill Montia

Story link: Home insurance main target for fraudsters

Home insurance is now the number one target for insurance fraud, with latest industry data showing that 170 of the 335 fraudulent insurance claims detected each day, on average, are cheating householders.

According to the Association of British Insurers (ABI), typical fraudulent household claims involve “accidental” damage to carpets and furniture due to drink spills, which have been caused deliberately.

However, fraudulent motor claims are the most costly: 108 bogus motor insurance claims, worth £1.12 million, are exposed by Britain’s insurers each day, out of a total of £2.3 million in fraudulent claims.

The ABI’s director of general insurance and health, Nick Starling, says: “Insurance fraud adds an extra £44 to the average UK household’s annual insurance bill.”

He adds: “This is why 2011 will see insurers intensify their war against the cheats, to protect their honest customers.”

The ABI’s roll call of insurance cheats so far include:

A policyholder who claimed for the theft of DVDs that he said had been bought locally, despite the fact that they had yet to be released in the UK.

A policyholder who crashed his car on the Nurburgring race track in Germany and then shipped the vehicle back to the UK and left it alongside a road, where he claimed the damage had taken place.

A man who claimed for head injuries allegedly as a result of falling over a loose paving stone, when he had been hit by a baseball bat during a fight.

 

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