ABI: Driven to deception - insurers detect record amounts of motor fraud: £5 million a week

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Thursday, 03, Jul 2008 12:00

Dishonest motorists who see insurance as a way to clear their debts or make money face a nasty surprise. Figures released today by the ABI (Association of British Insurers) show that last year insurers uncovered 24,000 fraudulent motor insurance claims worth £260 million, or £5 million every week. The number of dishonest motor claims detected has risen by 70% over the last three years.

Cheats who have been caught out include:

• A policyholder, claiming for damage to her Land Rover when it hit the front of her house, said it was caused when her foot slipped off the brake. However, the damage was caused deliberately, following an argument with her partner.

• A car owner claimed his car had been stolen. It was proved that he had pushed it over a cliff, and planned to use the insurance payout to meet his Hire Purchase payments.

• The owner of a Rolls Royce claimed £10,000 for the alleged theft of the front grill, hubcaps, steering wheel, seats and bonnet mascot. However, he had removed the items himself; they were later found in his home by the police. He received a criminal conviction.

Nick Starling, the ABI’s Director of General Insurance and Health, said:

“Insurance fraud is no victimless crime. Honest motorists pay through higher insurance premiums – an extra £40 a year on average. This is why insurers are ramping up their crackdown to weed out the cheats. Anyone committing insurance fraud is more likely to get caught, risks a criminal record, and will find future insurance and credit harder to obtain and more expensive.”

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Notes for Editors

1. Enquiries to:

Jonathan French 020 7216 7392 (Mobile: 07958 330 480)

Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)

Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)

Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. In 2007, ABI members uncovered 91,000 fraudulent claims under motor, household, travel, and liability insurances. The total savings amounted to £557 million.

3. The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

4. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk