Insurance fraud on the rise

Honesty appears to be the latest victim of the credit crunch, with insurers reporting an increased number of people deliberately falsifying information on their application form. Common untruths include failing to disclose a teenage driver is the main driver on a car insurance policy or omitting previous motoring convictions, such points on the license for speeding.
Similarly some people are failing to disclose previous health conditions on travel or medical policies and may be economical with the truth about how much they smoke or drink when taking out life insurance.
A spokesman for the ABI said that such untruths amounted to fraud. It warned that providing inaccurate information in a bid to lower premiums could prove to be a false economy as any subsequent claim would be invalidated if this information came to light.
Nick Starling of the ABI added: "Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences."
He advised those who were struggling with rising premiums to shop around to get the cheapest cover possible. By contacting a number of insurers at renewal it is often possible to reduce the cost of both motor and household insurance.
Starling added that the vast majority of policyholders remained honest, but they were paying for those who do not include accurate information so do not pay a "fair" premium for the risk they present. The Association estimates that such fraud causes the insurance premiums to be £30 more expensive than they needed to be. (from timesomline)

So are you honest when filling out you renewal/new policy form ?
Have you ever told a white lie with a claim?

GD wrote:Honesty appears to be the latest victim of the credit crunch, with insurers reporting an increased number of people deliberately falsifying information on their application form...

Or have the insurance companies just started looking a little harder?

The insurance companies have been guilty of accepting premiums for policies without checking the facts given in an application, then refusing a claim when the time came and using the false statement as the reason: Great business as the cost to them is nil and they don't have to return all those incorrectly collected premiums.

Of course now that their own audit systems are under scrutiny they're having to actually do their jobs better, and claim an increase in dis-honesty, rather than an increase detection??

Personally I don't lie on insurance forms, and it make me mad when I hear people bragging about what they've got away with while I have to pay an inflated premium. Thieving bast**ds.

The average premium of a driver with a full no-claims bonus could rise from an average of £400 to £480.
Patrick Smith, chief executive of the Swinton group, said: "I would say that premiums are 20 per cent lower than they should be. They are seriously adrift. Within the next 12 months there will be a significant correction."
The AA also warned of rises but put the figure at nearer 10 per cent.
A spokesman said: "One thing that is certain is that the average premium will continue to rise, but by how much?
"Some commentators suggest a rise of 20 per cent over the next year and certainly, a rise of that magnitude will be necessary if the insurance industry is to achieve an underwriting profit.
"At present, for every £100 spent on premiums, insurers pay out approximately £105."
Around £30 of every policy paid by the UK's 33 million motorists also goes to cover the costs of accidents involving uninsured drivers.
The AA said 430,000 people claimed for whiplash injury last year. Their total compensation of £1.9 billion is equivalent to about £66 for every policy.
Comprehensive premiums have more than doubled since the AA Index started in 1994.

Wow! That's not far shy of a billion pounds 'stolen' by the uninsured. Prosecution of these low-lives needs to be far harsher, take their license to drive, their car and fine them at least double the cost of what their premium should have been.