Insurance fraud is a big business within the UK, nearly rising a quarter in two years. The financial downturn has also encouraged wannabe liars to put pen to paper and file fake accident claims, in the hope of seeing some money.
The Association of British Insurers (ABI) has stated that such practice is so popular, that is costs £5.2 million daily and adds an additional £44 to the cost of car and home insurance policies.
As a result, the ABI conducted a study, just to prove how widespread this crime is. More than two in five people thought it was acceptable to increase the value of a lost or stolen item and three in ten said it was OK to exaggerate the extent of damage to items when claiming.
However, in a bid to fight back the never ending fraud battle; insurance firms are arming themselves by exposing the cheats and liars that storm the country. This article reveals some of the scams that were exposed.
Cons that got caught
A driver filed an
accident claim after being involved in a crash with a bus on a roundabout. Their insurer received 34 personal injury claims from bus passengers, but the motorist claimed the bus was no more than half full, and it was only a 31-seater.
As a result, the police interviewed 21 claimants, who all admitted that their case was false. However, one victim had contacted a claims firm, which referred 34 cases to two separate companies, claiming £500 each. The case is still continuing.
Another case exposed a bride who filed an £850 accident claim on her wedding dress, after it was apparently damaged by paint. When the veil arrived at the
claims department, the paint was still wet, despite the wedding occurring a month before.
Paint proves to be a popular method for obtaining money, as a homeowner filed an accident claim for accidently dropping a paint pot whilst decorating. He stated that his carpet was subsequently damaged. He managed to walk paint all over the rest of the house, as every carpet was reportedly damaged too. The pot also landed on his laptop, breaking and covering it with paint.
Couple ticked off as watch claim proves false
Lastly, time really is off the essence, after an £12,000 accident claim was filed for a Rolex watch, which the individual lost whilst waterskiing. Whilst the claim was authentic, the watch wasn’t. This led to a dispute between the couple, as the girlfriend brought the item as a present for her boyfriend and claimed it was a genuine product.
Although these cases are funny, insurers have warned that such practice is damaging to the economy and insurance businesses.
"This was not only an attempt to make a false insurance claim for money; this was also an insult to the civil courts system. False insurance claims are criminal, fraudulent offences," said Det Con Chris Harrison.
The ABI stated: "Insurance cheats are more likely to be caught than ever before," said Nick Starling, the ABI's director of general insurance and health.
"Cheats will pay a high price as future insurance and credit will be more expensive and harder to obtain," the group warned.
