 Staged motor accidents are one type of fraud |
More than �3.5m worth of insurance fraud is uncovered every week by insurers, a study has said. The Association of British Insurers (ABI) said insurance firms uncovered �200m of fraudulent claims in 2004, a rise of 95% on 2002.
More cases have been found as a result of better fraud detection techniques and information sharing, the ABI said.
Frauds ranged from deliberately smashed TVs and invented burglaries to highly organised scams.
In one case, a claim for a damaged carpet caused by "accidental" spillage of paint was rejected when forensic tests showed the paint had been deliberately applied.
In another, a woman - whose husband had walked out on her - reported him to the insurance company for exaggerating the extent of his injuries following a car accident.
Organised fraud
The ABI, which represents 94% of the insurance business in the UK, said the industry was also clamping down on more organised frauds.
Staged motor accidents are one type of wide-scale organised fraud that the ABI says insurers are cracking down on.
The scam involves deliberately staging motor accidents using innocent motorists, then claiming for damage to the vehicle and whiplash neck injuries.
Their cases are supported by false witnesses, who are in on the scam.
"Contrary to what some people think, insurers are no soft targets for fraudsters and that is good news for honest policyholders," said Chris Hannant, the ABI's head of financial crime prevention.
The ABI has recently created a "cheat line" for people who want to report suspected or known insurance fraud. Telephone: 0800 328 2250.
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Contrary to what some people think, insurers are no soft targets for fraudsters
