Insurers discover increased cases of fraud

British insurance companies are uncovering greater numbers of frauds every day.

According to the Association of British Insurers (ABI) in excess of £1 million worth of fraudulent insurance claims are made every day.

This number of claims uncovered and prevented rises to a total yearly claims figure of £480 million which represents three times the amount found in 2003.

Nick Starling, Director of General Insurance and Health at the ABI, said: “Fraudulent insurance claims cost £1.6 billion, and add £40 a year to the premiums paid by honest customers.

“But the industry is fighting back. Insurance cheats are more likely to be caught than ever before. And cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain”

The majority of fraudulent claims (85 per cent) involve the claimant exaggerating the value of the loss of money or possessions, with over half of falsified claims regarding household insurance.

One example of a fraudulent claim concerns a man who asked for “recovery expenses” after allegedly suffering a heart attack on holiday in West Africa. He in fact used the money for visits to local brothels.

Tags: general insurance, fraudulent insurance claims, value, man, three times, price, fraud, Insurance

Kids pose driving danger

British drivers may be at risk of having an accident simply by having their children in the car with them.

Almost eight million motorists say that their children are a distraction while they are behind the wheel and many people admit to being on auto-pilot during much of their time on the road.

LV= General Insurance points to official figures which say that 2,895 of the 150,000 accidents on British roads are caused by distraction and is urging drivers to remain focused while behind the wheel.

“On today’s busy roads, with 16 per cent of accidents having fatal or serious consequences, it is vital to maintain 100 per cent concentration when behind the wheel,” said Andrew Beard, from LV.

“It is frightening to think what can happen in the split second when drivers take their mind of the road.”

Mr Beard went on to point out that any distraction while driving is dangerous and said simple tasks such as changing a CD or smoking can lead to a crash.

“With the holiday season just around the corner, many families will be setting off on longer than usual car journeys – preparation is the key to help avoid in-car distractions,” he continued.

“Packing the car with travel games and books before you set off will help to keep the children amused whilst on the move. You may also want to think about getting your CDs loaded and your radio tuned, so you can listen to your favourite tracks without having to fiddle with the audio equipment.”

Tags: Text messaging, distraction, general insurance, Packing, Andrew Beard, travel games, usual car, car distractions