Fraudulent Claims on the Rise

21st January, 2011

The Association of British Insurers has released figures to show that householders are now the number one cause of fraudulent insurance claims. The extra cost to all of our insurance policies is £44 on top of our own annual risk assessed premium.

On average, there are 335 fraudulent claims each day and the main culprit is the accidental damage clause that allows householders to claim for spillages and damage to furniture which has been caused deliberately.

The incidents of televisions falling down stairs and ending up in a heap have increased as many more people prefer the new flat screen T.V’s. The inclusion by some insurers to add voice technology to telephone systems that alert the claims handlers to inconsistencies of the truth have helped flag up fraud throughout the industry.

Although fraudulent home insurance claims are rife the other area of concern for insurers is the high cost of bogus claims in the motor insurance sector. These claims can cost thousands per claimant and around 100 bogus claims are exposed every day, these claims, if paid out, would cost £1.12 million. Insurance companies have pledged to get even tougher with the cheats during 2011 to help cut the cost to all of us.

 

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