Insurance Fraud

The Association of British Insurers have warned that the recession will mean an increase in fraudulent insurance claims. Official figures showed that insurance fraud increased by 30% in the past year totalling £730 million.


Fraudulent household and motor claims were the highest with motor claims accounting for £360 million. One case involved a man who reported his car stolen from a car park. He later admitted that he pushed his car over a cliff and was planning to use the insurance payout to repay debts. Fraudulent claims add £40 to the average insurance premium.