You are here: Home - Insurance - News -

Insurance fraud costs the country £1.6bn each year

Written by:

Fraudulent insurance claims cost the UK around £1.6bn a year, according to a survey of almost 7,000 people by the Association of British Insurers (ABI).

It estimates that false claims are costing the industry £4m a day, putting on £40 to the average premium paid by policyholders.

The commonest false claims are deliberate spills or cigarette burns on carpets and furniture to collect on policies – and 10% of the survey’s respondents admitted to cheating on their insurance company.

Around half of the fraudulent claims happen with home contents and buildings insurance policies, the ABI said.

Many claims centre on exaggerated injuries against local councils for tripping over loose paving stones or deliberately overestimating the value of personal items lost while on holiday.

“Honest customers pay for the cheats,” said Nick Starling, director of general insurance health at the ABI.

“These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness that it deserves.”

However, Lee, a serial insurance fraudster, is unperturbed by this. “The police are too busy with everything else to bother with me,” he said.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Tax credit mistakes by HMRC cost the taxpayer £1.4bn

Around £1.4bn will be written off this year by Her Majesty’s Revenue and Customs (HMRC) in overpaid tax credits, according to a...