After newly revealed figures indicate that daily fraud costs top £2.3 million, car insurance companies have vowed to fight harder to stem the tide against bogus claims.
Approximately 335 fraudulent claims are filed on a daily basis according to the Association of British Insurers. Many of these claims relate to either home insurance or motor car insurance.
The ABI stated that home insurers detected about 170 dishonest claims on any given day. Most policyholders try to pass off intentional damage to carpets or furniture as accidental.
Meanwhile car insurance groups deal with around 108 fraudulent claims per day. The estimated cost of these claims amounts to approximately £1.1 million said the ABI.
The insurance industry is attempting to put tougher measures in place in order to thwart cheaters. The ABI stated that doing so will protect their honest policyholders from the burden of extra costs.
General insurance and health director for the ABI Nick Starling stated that a high percentage of their customers are honest. These customers have rightly objected to having to subsidise fraudsters, as incidences of fraud can add up to £44 to the average amount a UK household spends on insurance premiums.
In the five years the ABI has been collecting insurance fraud data they have catalogued increasingly bizarre claims. One such claim involved a man who stated that in the wake of an accident he had lost the ability to walk unaided.
However his fraud was soon uncovered. The man found it difficult to claim that he was stricken with such a life-altering disability when a local newspaper featured him in an article. Not only was he named as a player in a local football team, the article named him as the leading goal scorer for the team as well.