Motor claims still top fraud list

Insurers discovered more than 130,000 individual fraudulent claims last year, according to the Association of British Insurers (ABI); that’s the equivalent of 2,500 claims per week, an increase of six per cent on 2014.

However, figures revealed that the value of these frauds fell by three per cent to £1.3bn.

The decrease could be partly attributed with the government’s clampdown on whiplash claims and the reduction in legal costs for road traffic accident claims, with fraudsters instead focusing on ‘slip and trip’ claims, which rose 36% last year.

However, dishonest motor claims remained the most common frauds and had the highest value. Some 70,000 were detected, down slightly at two per cent on 2014, with a value of £800m down 10%.

James Dalton, the ABI’s director, general insurance policy, said, ‘Insurance cheats do not lack nerve or ingenuity, which is why there will be no let-up in the industry’s commitment to protect honest customers.

‘The chances of getting caught have never been greater, and the consequences, such as a prison sentence and difficulty in getting future insurance and other financial products, have never been more severe and long-lasting.

‘Reducing fraud is part of a bigger picture of reducing unnecessary costs, so that honest customers benefit from the most competitive insurance deals. This is why it is important to ensure that the government implements further proposals aimed at tackling rising personal injury claims, and that there are no further increases to the rate of Insurance Premium Tax.’