27-05-2016

A recent survey has revealed 1 in 3 people have or would commit insurance fraud by lying about an accident or personal details. Would you?

4 in 5 People Think it's OK to Exaggerate Claims

Insurance Times and AXA Personal Lines recently released the results of it's Fraud Survey that found that 64% of respondents now think it is socially acceptable to submit a fraudulent insurance claim. 81% also believed it was fine to exaggerate about an incident when making a claim. Something that matches up with the average (80%) number of insurance fraud cases in the UK that are caused by exaggerated claims to insurance providers or brokers.

More and more people are lying about their occupation, address or usage in order to reduce premiums. And although, just 5% think the complete invention of a claim is ok, there has been a 40% increase in fraudulent claims made in the last year.

Richard Davies, Global Chief Fraud Control Officer AXA Group & Head of Fraud AXA UK, has commented on the findings of the survey. He said:

"As an industry we need to change the perception that it's acceptable not to tell the truth to insurers,"

"People see the high profile work around the Insurance Fraud Bureau (IFB) and don't believe that lying on an insurance application form or exaggerating a claim has the same impact as the cash for crash scams; all types of fraud increase the premiums for genuine customers and AXA thinks this is wrong."

The Repercussions of Insurance Fraud

What may not seem like a big deal or a victimless crime could result in you getting into a lot of trouble. In 2012, the Association of British Insurers (ABI) released a report that revealed that in every hour of every day, 15 fraudulent insurance claims are exposed in the UK.

Penalties range depending on the individual case and take into account elements such as the type of insurance, the value of the fraud and extent of the lie. However, consequences could include licence points, a fine and/or imprisonment of up to 10 years.

It will also make applying for future insurance policies very difficult and more expensive, plus it could affect your credit rating.

But, it's not just the people who commit the crime that fraud affects. Higher numbers of fraudulent claims will also contribute to rising insurance premium costs. This, on top of the extra £400 million that crash for cash schemes are adding to premiums each year, could see the honest few being quoted considerably higher for cover.

Fighting Fraud from the Top

The UK government has recognised this growing number of cases and has recently released the findings of a review by the Insurance Fraud Taskforce. This states that the government will encourage insurers to make application and claim forms easier to understand, increase the use of data sharing between insurers and regulatory bodies, plus raise awareness of this fraud.

Justice Minister Lord Faulks said:

"Fraudulent and exaggerated claims force up the costs of insurance premiums for everyone and we must take steps to tackle this."

Compare to Keep Costs Down

There's no need to lie to insurers in order to get a low premium. Instead compare quotes online with us. It's quick, easy and can ensure you get the best priced policy possible. Compare here.