One in ten insurance claims may be fraudulent

A study by the Norwich Union claims that, because so many people regard society as dishonest, that they justify their own 'little white lies' and exaggerations to themselves when they attempt to defraud.

One in twelve people openly admits to having reported a mobile phone lost or stolen in order to get an upgrade, to have exaggerated an insurance claim, or to have concealed a past accident when buying a motor policy.

This is costing the industry some £1.6 billion, or an additional £40 added on to every single insurance policy.

Dominic Clayden, director of claims at Norwich Union, comments: "As much as 60 per cent of all insurance fraud is committed by opportunistic fraudsters, who tend to be motivated by a belief that 'everyone else is at it' or by a concern that they will not be paid the full value by their insurer.

"These concerns are in fact entirely misplaced, our priority is to pay genuine claims in full, as quickly as possible. The fact is that claims costs drive future premiums and consequently the more fraudulent claims there are the more premiums must be inflated for the honest, law abiding majority."

A Channel 4 television programme tracking insurance fraud investigators as they uncover fraud will be shown as a part of the 'Cutting Edge' documentary series this week.

29/01/2008 15:02:26