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| Recession 'fuels insurance fraud' | |
| (about 6 hours later) | |
| The recession prompted a rising number of fraudulent insurance claims last year - such as the case of one motorist who pushed his own car over a cliff. | The recession prompted a rising number of fraudulent insurance claims last year - such as the case of one motorist who pushed his own car over a cliff. |
| Some 107,000 claims worth a total of £730m were found to be false last year, according to the Association of British Insurers (ABI). | Some 107,000 claims worth a total of £730m were found to be false last year, according to the Association of British Insurers (ABI). |
| This value was up 30% on the previous year, and the figure has risen in each of the past four years. | |
| The ABI said fraud was "more of a temptation" during a recession. | The ABI said fraud was "more of a temptation" during a recession. |
| While detection of fraud has risen, the group also suspected that the actual amount of fraudulent claims for motor and household insurance had also increased. | While detection of fraud has risen, the group also suspected that the actual amount of fraudulent claims for motor and household insurance had also increased. |
| 'Dishonest claims' | 'Dishonest claims' |
| Fraudulent claims were most common on home insurance, with 55,000 false or exaggerated claims detected last year. | Fraudulent claims were most common on home insurance, with 55,000 false or exaggerated claims detected last year. |
| Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats Nick Starling, Association of British Insurers | |
| False motor insurance claims were the highest by value, at £360m. One of these cases involved an owner who reported his car stolen from a car park. | False motor insurance claims were the highest by value, at £360m. One of these cases involved an owner who reported his car stolen from a car park. |
| Later, he admitted he had pushed the car over the cliff and planned to use the insurance payout to pay off his debts, the ABI said. | Later, he admitted he had pushed the car over the cliff and planned to use the insurance payout to pay off his debts, the ABI said. |
| Another claim for "recovery expenses" by a man holidaying in West Africa was declined, as it included services at a local brothel. | Another claim for "recovery expenses" by a man holidaying in West Africa was declined, as it included services at a local brothel. |
| "Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats," said Nick Starling, the ABI's director of insurance. | "Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats," said Nick Starling, the ABI's director of insurance. |
| "Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers." | "Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers." |
| Detected fraud stood at £260m when the ABI first collected figures in 2004, rising to £410m the following year, up to £470m in 2006 and then rising again to £560m in 2007. | Detected fraud stood at £260m when the ABI first collected figures in 2004, rising to £410m the following year, up to £470m in 2006 and then rising again to £560m in 2007. |