Insurance fraud costs us all – even false travel claims

The Association of British Insurers estimates that insurance fraud costs £1.9bn a year.  That means that the premiums of honest people are being inflated by the activities of the criminal minority.  Motor insurance fraud alone is reckoned to cost £3.5m. 

Insurers are working harder than ever to spot fraud. In the travel insurance sector insurance companies detected 4,300 fraudulent claims in 2008 with values totaling £5m. Recently a gang of people received prison sentences for staging fake accidents so they could put in fraudulent claims against the innocent victims.

The Insurance Fraud Bureau has been set up by the insurance industry to coordinate action against insurance crime.  Their website is full of useful information (www.insurancefraudbureau.org).  People can use it to report suspected fraud in confidence.

 If you are worried that your valid insurance claim may be turned down or disputed it is a good idea to keep receipts or other proof of ownership.  For travel insurance or homeowner insurance for example, photographs of your valuable possessions will be very helpful.  If you have something stolen remember to report to the police and obtain a reference number.

Do you suspect anyone of exaggerating or completely fabricating an insurance claim?  Let us know or better still contact the insurance fraud bureau.

Remember, all fraud costs us – even small cliams on winter sports travel insurance policies for example, it all adds up!