Fraudulent insurance claims running at 350 a day!
Insurance fraud can add up to £50 on your premiums; but luckily according to the Association of British Insurers (ABI) insurance companies are managing to foil the fraudsters as they detect 130,000 insurance claims in 2015 (down from 180,000 in 2013).
This is the equivalent of 2,500 claims a week, totally over £1.3bn.
The report from the ABI goes on to say that there has been a growth in dishonest “slip and trip” claim, with some 26,900 dishonest liability insurance claims, including slip and trip claims, detected in 2015; this is a marked increase on the 19,800 in 2014 (a 36% increase).
The chances of getting caught submitting fraudulent claim really has never been greater, and it’s not just the insurance firms that are cracking down on fraud, law firms are playing their part too, and if we spot something that just doesn’t look or feel right then we’ll never pursue a claim.
The consequence of submitting a fraudulent claim and being found out by the insurance companies could be as severe as a prison sentence and ultimately difficulty in getting future insurance and other financial products.
Whilst we applaud the industry cracking down on fraud, we are not 100% convinced by the figures from the ABI; more specifically is this all genuine fraud?
It’s possible that a vast amount of ‘so called’ fraud could be legitimate claims that fail to be supported by enough evidence – so are we seeing ‘proven’ fraud and ‘suspected’ fraud mixed in together; we know from previous ABI reports that the term ‘fraud’ doesn’t necessarily mean someone has received a police caution or a successful prosecution, but just something for one reason or another the insurance companies suspect could be fraud!
Furthermore if the insurance companies are stopping £1.3bn of fraud a year, then why aren’t ordinary folk receiving huge discounts on their insurance premiums? This is something that the industry keeps promising will happen with the reduction of fraud, but we have yet to see evidence of it actually happening.
We are a responsible business and we applaud the efforts of everyone involved in road traffic incidents doing their bit to put a stop to fraudsters, but the insurance industry must be honest with us all and put their profits where their mouths are and start reducing premiums.