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Many people in the UK may have seen the cost of their insurance premiums rising, and with many types of cover, such as home and vehicle insurance, it is widely known that these rises are often enforced because of the huge losses that insurance companies suffer as a result of fraudulent claims.
And now, according to recent data, it has been revealed that nearly ten percent of adults Brits have made fraudulent insurance claims, despite knowing that it is wrong, illegal, and can affect their own and others’ premiums over the long term.
Nearly one in ten adult Brits has admitted to this type of insurance fraud, and this includes people from a wide range of backgrounds. The research was carried out by Experian. The results of the research also showed that although over 90% of respondents knew that this type of fraud was wrong and illegal, only 14% would actually report it, further fuelling the insurance fraud issue facing Britain. Many through that although insurance fraud was a serious offence, it was not against an individual but against an organization.
David Murby from Experian stated: "The survey revealed that people are well aware of what constitutes insurance fraud and consider it a fairly serious crime, which is not victimless, but they see it as a crime against an organisation rather than an individual and, as a result, appear less likely to report it."
He also stated that around £1.5 billion is lost every years by the insurance industry as a result of fraudulent claims. There are also FSA guidelines relating to insurance fraud, and these suggest that insurance companies should be more open with customers when they feel that the customer is trying to make a fraudulent claim rather than finding another reason to turn down their claim.
Tom Smith
22.04.07
Further Information:
External Links:
- BRAKE - The road safety charity
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