Home insurance dodgers beware, providers uncover £1m in fraud daily

Posted : 18-10-2007

Providers of cover - such as car and home insurance - are discovering and preventing fraudulent claims worth over £1 million every day, it has been announced.

According to the Association of British Insurers (ABI), this figure is some three times the amount uncovered in 2003.

Other findings in the study indicated that almost half of detected fraud was on home insurance. Typical examples of scams include damaging carpets intentionally while claiming that it was caused inadvertently.

Nick Starling, director of general insurance and health at the ABI, stated that fraudulent insurance claims add £40 a year onto the premiums paid by honest customers for cover such as home or car insurance.

"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," he noted.

The ABI recently stated that about one in four consumers do not have home contents insurance.


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