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What's caused 'record rise' in motor insurance fraud?

By Matthew Plant

18 September2021

Every week, we hear, insurance providers are unearthing 865 motor insurance claims (worth over 10 million in total) that are dishonest.

So says the Association of British Insurers (ABI), which launched The Insurance Fraud Register a week ago. It's a national database of insurance fraudsters that have been identified - and it's the ABI's latest way of trying to protect honest customers.

'Phantom passengers and phoney injuries', the ABI tells us, are to blame for the record rise in fraud when it comes to motor insurance. Last year alone:
. 45,000 fraudulent motor insurance claims were discovered
. 7% of all motor insurance claims were fraudulent
. Detecting those fraudulent claims saved 541 million for honest customers.

The ABI provides a few examples of the fraudulent motor insurance claims discovered. For example, one driver called his insurer to tell them his two passengers were suffering from whiplash injuries after he reversed into a lamppost. In this case, the insurer didn't have to look far for proof of fraud, since they heard the man boasting about lying to them (when he thought he'd finished the phone call).

"Anyone who thinks that claiming for bogus injuries following a road accident is money waiting to be collected is in for a nasty surprise," said ABI's Director of General Insurance, Nick Starling. "Insurers will do whatever it takes to protect their honest customers by weeding out the cheats.

"The new Insurance Fraud Register means that insurers will be able to check for insurance fraudsters, who will face not only a criminal conviction, but more expensive and harder to get future insurance as well as difficulties in getting other financial products, such as loans."

Tags: insurance, car insurance, fraud, claims, ABI, Association of British Insurers

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