The Insurance Council of New Zealand has launched a fraud hotline to fight rorts that cost local policyholders more than $NZ150 million ($128 million) a year.

“If insurers can reduce the amount of fraud through efficient policing of claims, the cost of insurance will be lower,” the council’s Finance and Regulation Manager Terry Jordan said.

“This is particularly relevant given that insurance premiums are rising due to the enormity of recent catastrophe events here and in Australia and Japan.”

The council estimates fraud means policyholders pay about $NZ120 ($102) more than they should each year for home, contents and vehicle cover.

The Insurance Council of Australia has a separate fraud taskforce – the Insurance Fraud Bureau of Australia – to fight the crime.

The bureau operates a hotline and provides a law enforcement enquiry service to facilitate police investigations.