 The database will record the details of all written-off or stolen vehicles |
Dishonest motorists will find it harder to get away with filing bogus insurance claims, thanks to a new database. The database, to be run by vehicle information firm HPI, will log details of written-off or stolen vehicles.
This will help insurers identify fraudsters who insure their car with several firms and then file multiple claims following a staged accident.
The Association of British Insurers (ABI) said the database could help cut insurance costs for honest motorists.
Savings
The ABI estimates that the database could save insurers �20,000 a day in detecting and deterring fraudulent insurance claims.
It added that insurers could be paying out as much as �500m a year to fraudulent claimants.
"Dishonest motor insurance claims are paid for by honest customers, this is why insurers are determined to stamp them out," ABI spokesman Justin Jacobs said.
"Not only will it help detect more motor fraud but it will act as a strong deterrent, making anyone thinking of cheating on their insurance think twice."
The new database will combine information from insurers and the Police National Computer.
Previously, insurers tracked fraudsters by searching for inconsistencies in claim forms. They used a rudimentary industry database which contained some vehicle details.
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