Fraudulent car insurance claims 'contribute to £1.6bn annual loss for the industry'

Posted :02-10-2007

The various types of fraud that take place in the insurance sector costs the industry some £1.6 billion year, it has been reported.

Malcolm Tarling, a spokesperson for the Association of British Insurers (ABI), stated that while many of the claims are for relatively small amounts of cash such as "the odd £50 here or £100 there", the combined total of such fraudulent requests represents a "huge" loss for the sector.

He added that there is "a lot" that providers are doing to reduce insurance fraud, such as regularly and thoroughly checking industry-wide databases.

"[Insurance fraud] also adds about five per cent on to all premiums, which is then paid for by honest customers," Mr Tarling concluded.

According to the North West Fraud Forum, one in ten adults in the UK - some five million individuals - admit to making a fraudulent claim on a general policy such as home or car insurance.


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