New weapon unleashed on cheating motorists

The net is tightening on dishonest motorists, with the launch of a national database to expose fraudulent motor insurance claims. It is estimated that this register will save £20,000 a day in detecting and deterring fraudulent motor claims.

The new national database, which is being run by vehicle information experts HPI, will contain details of all vehicles written-off following an accident or reported stolen. It will contain details of over six million claims for total loss vehicles, enabling insurers to expose scams and protect honest motorists. The database replaces the Motor Insurance Anti Fraud and Theft Register.

The database will help identify fraudsters who insure their vehicle with several insurers at the same time and then try to claim from each following a genuine or staged accident, or having reported the vehicle as ‘stolen’.

Multiple cheats who have already been caught out include:

- A policyholder who insured his old Fiat car with 11 different insurers, and then claimed for a replacement from each, following a crash, which he had caused himself. If successful he would have stood to gain £34,000 against the car worth £1,000.
- A woman who reported her car stolen to the police. After her insurer had paid out the database detected that the vehicle was no longer listed as stolen on the police national register. They confronted the policyholder who admitted that the car had not been stolen in the first place 

Justin Jacobs, Head of Motor and Risk Pricing at the ABI, said:

“ Dishonest motor insurance claims are paid for by honest customers – this is why insurers are determined to stamp them out. The development of this new database shows the industry’s commitment to sharing information with the common aim of reducing insurance fraud. Not only will it help detect more motor insurance fraud, but it will act as a strong deterrent, making anyone thinking of cheating on their insurance  think twice.” 

Joe Doyle, Commercial Director of HPI, said:

“ The new database supports insurance fraud detection by making the most of all available intelligence on total losses and thefts, including information from the Police National Computer. HPI is delighted to be running the system and at the support it has received from the whole motor insurance community.”
 
     

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Enquiries to: 
 
 Malcolm Tarling , ABI : 020 7216 7410  (Mobile: 07776 147667)
        
Notes to Editors:

1. Established in 1987, the Motor Insurance Anti Fraud and Theft Register (MIAFTR) contains details of all vehicles written off by insurers, allowing them to check accident histories and claims made against these vehicles.
2.  Originally established in 1938, HPI is the UK’s primary source of vehicle information for the motorist and the motor industry. HPI checks give purchasers instant confirmation of whether their vehicles are correctly described, known to be subject to outstanding finance or serious damage, recorded as stolen or ‘clocked’.
3. The ABI is the trade association for Britain’s insurance industry. Its more than 400 member companies provide over 97% 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 more than a fifth of all investments traded on the London Stock Exchange, on behalf of millions of pensions and savers.
4. An ISDN line is available for broadcasts. 
08/05
Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk

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