Brought to you by:
Zurich
Zurich

UK insurance fraud jumps

Facebook Twitter LinkedIn Google

A police officer and an employee at a claims management firm featured among 107,000 fraudulent insurance claims detected in the UK last year.

Association of British Insurance (ABI) figures show the number of fraudulent claims rose 5% in 2019, though the value fell 2% to £1.2 billion ($2.12 billion).

The equivalent of nearly 300 fraudulent claims and just over 2000 dishonest applications were detected each day last year. Motor insurance frauds remained the most common, up 6%, with around 75% of these containing a personal injury element.

Property frauds jumped 30% to 27,000, hitting £124 million ($218.61 million).

Some examples:

The policeman was convicted after his own dashcam footage showed debris from a passing van that he alleged caused personal injury and damage to his car was polystyrene.

Another man was sentenced after CCTV caught him purposely banging his knee several times on a paving stone and hopping on one leg to make a fake injury claim.

A couple was convicted after a series of claims worth £50,000 ($88,135) for personal injury and damage to vehicles from accidents that never happened. They created “phantom passengers” to try to claim more.

CCTV footage led to another man being convicted of staging “slip and trips” at a pet shop and a discount store which would have netted him £11,000 ($19,391).

The number of liability frauds fell by 14% to 19,000 which the ABI said may reflect insurers clamping down on “trip and slip” claims, noise-induced hearing loss and dishonest holiday claims.