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16/04/2009
Insurers Detect Record Amount Of Fraudulent Claims
Insurers are detecting record levels of fraudulent insurance claims, 2,000 every week - worth £14 million - according to figures released today by the Association of British Insurers (ABI).
However one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future, and getting a criminal record.
ABI figures show that in 2008:
"Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.
"Cheating on your insurance really does not pay "you will get caught, future insurance will be more expensive and, along with credit, harder to obtain. The only thing you are likely to gain is a criminal record," he insisted.
(CD/BMcC)
However one in five people would still be tempted to cheat on their insurance, despite the likelihood of being caught, facing trouble in obtaining financial products in the future, and getting a criminal record.
ABI figures show that in 2008:
- 107,000 fraudulent insurance claims were exposed, a rise of 17% on 2007. The value of these claims, at £730 million, rose by 30% on the previous year
- Dishonest claims on home insurance were the most common, with 55,000 false or exaggerated claims detected. By value, fraudulent motor insurance claims were the highest, with £360 million saved
- 4% of all claims by value (excluding life insurance) were fraudulent, compared to 3% in 2007
"Fraud adds an extra £40 a year to the average premium, which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.
"Cheating on your insurance really does not pay "you will get caught, future insurance will be more expensive and, along with credit, harder to obtain. The only thing you are likely to gain is a criminal record," he insisted.
(CD/BMcC)
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Government Outlines Flat-Rate Pension Reforms
A new flat-rate state pension is being outlined by the government today. The unified pension rate, likely to begin in 2017, will amount to £144 a week. Prime Minister David Cameron says the plans are "fair", and will likely benefit women and many lower-paid workers who otherwise wouldn’t get a good state pension.
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