Insurance cheats risk trouble

If you have ever been tempted to make a bit of money by inflating a motor insurance claim, or for that matter fabricating one, you may think twice about it in the light of some statistics published recently.

According to the ABI, detection rates are up by 70% and the penalties are suitably harsh – and rightly so when you realise that, far from being a victimless crime, fraudulent claims mean that the honest motorists end up paying to the tune of around an extra £40 a year on their premiums. Last year there were 24,000 fraudulent claims made, costing the industry a staggering £5 million a week!

Whoppers told by customers include the tale of a stolen car which was found having been hidden by the owner in a barn. The woman was ordered to do 120 hours community service. Then there was the man who said his car had been stolen when he had in fact pushed it over a cliff, planning to use his ill-gotten gains to pay off his debts. A criminal conviction was given to a Rolls Royce driver who claimed that £10,000 worth of parts, including hub caps, steering wheel, mascot and even seats had been stolen from under his nose. Unfortunately for him, the police searched his house and discovered the missing items.

The good news is that insurance companies are stepping up their detection processes and, according to Nick Starling of the ABI, perpetrators can expect to be caught, dealt with appropriately and, with a likely criminal record, will find it hard, and of course expensive, to get insurance in the future.

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