Low levels of fraud with life insurance

December 12, 2007 by admin  
Filed under News, News-Insurance

“There are very low levels of fraud in the life insurance arena,” according to the Association of British Insurers (ABI).

Jonathan French, spokesperson for ABI, said: “Life insurance companies have a number of checks and balances in place to minimise fraud and there are very low levels of fraud in the life insurance arena.”

He added that the ABI have yet to make any official comments on the circumstances surrounding the Anne and John Darwin case, but it is “safe to say it is very unusual”.

In large scale incidents or natural disasters some insurance companies will pay out for life insurance policies even when there was neither a body nor formal death certificate.

This would occur when there was sufficient and substantial evidence for the presence of the individual in an area that was very badly affected, said Mr French.

According to research from the ABI, 40 per cent of households have life insurance. In 2006, the UK insurance industry paid out £17 million per day in death benefits.


Tags: Life insurance companies, finance, Ethics, area, insurance fraud, life insurance arena, Financial economics, Insurance

Related Entries

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!