Insurance companies are uncovering
an average of 335 fraudulent claims every day, says a report.
According to the Association of
British Insurers, the claims, which are being detected with increasingly
sophisticated techniques, are costing $3.6 million every day.
The most common type of insurance
fraud is home insurance, says the report, with 170 bogus claims made each day.
Fraudulent home insurance claims
usually involve people claiming for alleged accidental damage to carpets or
furniture – such as spilled red wine or coffee – only for insurers to find the
damage was done deliberately.
The second most common type of insurance
fraud was motor insurance, with 108 fraudulent claims made each day, costing
approximately $1.7 million.
Malcolm Tarling, of the Association
of British Insurers, said: “We’ve had people who have travelled overseas
and claimed for stolen cameras and items they’ve never had.”
He said some people also
“spill paint and coffee on carpets and then claimed for the complete
refurbishment of the home”.
One claimant crashed his car during
a race at the Nuerburgring race track in Germany, but shipped it back to the UK
to claim it was damaged at the side of the road in Britain.
Another policy holder alleged he
had sustained a head injury after tripping over a loose paving stone, only for
it to emerge he had been hit by a baseball bat during a fight.
Nick Starling, also of the
Association of British Insurers, said:
“The majority of customers are
honest and rightly object to subsidising the cheats”.
Insurance fraud adds an extra $68 to the
average UK household’s annual insurance bill.