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Phantom passengers and phoney injuries behind record rise in motor insurance fraud says the ABI

Phantom passengers and phoney injuries behind record rise in motor insurance fraud says the ABI

Bogus personal injury claims are behind the record rise in motor insurance frauds now being uncovered according to the latest figures from the ABI. Every week insurers are uncovering 865 dishonest motor insurance claims, worth £10.4 million. These figures come a week after the ABI launched its latest initiative to protect honest customers -The Insurance Fraud Register, a national database of known insurance fraudsters.

Latest figures from the ABI reveal that in 2011:

• 45,000 motor insurance claims were found to be fraudulent.
• The savings made for honest customers in detecting these bogus motor insurance claims were £541million.
• 7% of all motor insurance claims made were found to be fraudulent.

Examples of invented claimants and bogus injury claims uncovered by insurers include:

• A policyholder claimed to have been involved in an accident with another vehicle at a roundabout. However, the claim was rejected when an anonymous tip off led the insurer to discover that the crash was staged and that the people claiming injury were not in the vehicles.
• A woman claimed she was severely disabled following a road accident, leaving her unable to work. Evidence to support the claim was given by her husband and daughter. However, surveillance footage proved that she was not disabled and was working. The value of the rejected claim was £650,000. The claimant, her husband and daughter all received prison sentences.
• A man telephoned his insurer to report that he had reversed his car into a lamppost causing whiplash injuries to his two passengers. However, his story however soon unravelled when, believing he had ended the phone call, he could be heard loudly boasting to friends about how he had lied.

As part of the industry’s on-going battle to protect honest customers against the cheats, The Insurance Fraud Register has recently been launched. This national database will contain details of all known insurance fraudsters. Anyone on the database can be

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

“Anyone who thinks that claiming for bogus injuries following a road accident is money waiting to be collected is in for a nasty surprise. Insurers will do whatever it takes to protect their honest customers by weeding out the cheats.

“The new Insurance Fraud Register means that insurers will be able to check for insurance fraudsters, who will face not only a criminal conviction, but more expensive and harder to get future insurance as well as difficulties in getting other financial products, such as loans.”

Last updated 01/07/2016