posted 7 years ago

Bogus Motor Insurance Claims Hit 45,000

The Association of British Insurers has revealed that 45,000 dishonest motor insurance claims were unearthed in 2011.

The Association of British Insurers has revealed that 45,000 dishonest motor insurance claims were unearthed in 2011. This equates to 865 exaggerated or bogus claims per- week, which would have cost the industry an alarming £541 million. Notable examples included the 30 men who hired a coach to take them greyhound racing, then all claimed for whiplash after a staged crash. Furthermore, 37 people were jailed after arranging 180 incidents linked to 230 claims. These fraudsters - and every other convicted of the offence - must now feature on the new Insurance Fraud Register. This should be an invaluable weapon in the battle against a crime that increases the cost of insurance for every motorist.

The Association of British Insurers' Director General, Otto Thoresen, said: “The industry makes no apologies for its zero tolerance approach to insurance fraud. Honest customers are sick of footing the bill for insurance cheats through higher insurance premiums. From the highly organised ‘crash for cash’ motor scams to the opportunistic exaggeration of a genuine claim - insurers are determined to do what it takes to protect honest customers.”

But how much fraud was unearthed last year as a percentage? The 45,000 could have represented the vast majority of false claims. But perhaps it only represented 15%. The problem is knowing for sure. Some false claims would have stuck-out like a sore thumb - but what about the slight exaggerations. Was a laptop in the boot of that stolen car, or was it safe elsewhere? And was Mr X's wallet really in the glove box when someone smashed his window? Hard to know. Of course, every claim could have been obsessively investigated. But that would have alienated honest customers and cost a fortune. Plus, of course, there is little merit in spending £500 to expose a £50 exaggeration. If only everyone was honest, ey.

In april my elderly mother reversed into a taxi parked diagonally behind her,in a dimly lit car park.The taxi had no lights on and was parked across a "No waiting Thank You" notice painted in the car park.She could not have travelled more than 20 feet in total at a speed of less than 5mph max. It cost her £50 to have her bumper sprayed professionally, yet the taxi driver is claiming over £ 1,500 for the damage to his rear door, loss of earnings for a scratch that could have been polished out and wait for it - whiplash when he wasn't even in the car. It was only after a threat to the insurance company to report them that they decided to contest the claim.Their initial view was that it would be more economically viable to settle rather than contest the claim. It was only when they did so that they discovered the same taxi had five ongoing claims for the same thing. Surely if insurance companies vigourously contested claims for a period then this would cause bogus claimants to think twice. Also solicitors and claims companies are the pariahs in this industry,since the words honesty, integrity and common sense have been removed from their vocabularly

About 4 years ago a car ran into my rear end and damaged bumber. When I rang his insurance company (laughing dog) they admitted liability on the spot. I was so impressed they got my house insurance. As other respondants report the whole insurance industry and legal system is one vast pit of dishonesty.

i've had some bloke keep phoning me to ask me why i haven't claimed for a "accident" that i supposed to have had three years ago!!, i've told him umpteen times i should know if i've had a accident or not ,which i haven't but he doesnt seem to take the be warned...

A young mum ran into me when i was slowing for traffic lights last June. i have been amazed and disgusted by 4 or 5 phone calls, from companies trying to convince me I must have sustained injury however slight, even if I did not report it at the time. The most recent was this week. The damage to the car was very slight, but my insurance insisted on sending the vehicle 40 miles away for a repair which could easily have been done locally. Some one was driven here to pick it up, then again two people had to be paid to deliver my car after the repair. I had multiple calls from companies wanting to provide a hire car. My insurance company hardly dealt with me directly but used a company of solicitors. I got very confused with different calls from multiple companies. My car was repaired and everything covered, but afterwards I was informed that the my insurance company and the third party insurance company are squabbling over the costs of the hire car in the High Court. They seem to have dealt with this minor incident in the least efficient and most expensive way possible. They are a well known "reputable" company.

Well, having read this is not exactly satisfying. Recently I was parked outside a bank on a temporary parking when the car in front had decided to exit the parking completely and I went in the bay and parked my vehicle. The other driver then dangerously decided to reverse and do a u turn on the spot to go opposite direction, so as he reversed he collided into my car and damged my front bumper which I had replaced from the dealers just a month ago. The driver apologised and said it was his fault, so I put claim forward to a solicitor to deal with and that cheeky old git denied all liabilty and said I collided into him as a result my solicitor said they will not take my case on. Now I am left with a damage to my car worth thousands of pounds and injured. And I don't know who to go to. So its all okay everyone saying false claims should be highlighted but what happens to me as a innocent driver who has been left with a high bill and not being able to claim. This is industry is a money making scam for everyone. More like a white collar crime. Insurance companies are the biggest thieves, they sell a product and make millions out of us yet when we get involved in a accident we are told not to admit liabilty!! Why! This insurance industry always wins and we the consumers always pay for it either way. When it comes to taking the installments they take it without fail each and evry month but when we make a claim they treat it as fraud and don't want to pay out and make up their own excuses in order for them not to pay. This is sickening. Totally disgusted.

taxi driver went into the back of me- we shook hands to sort it out ourselves- i was worried iniatially - however he paid half my expenses and promise to pay the other soon- if only everybody could be trusted on a handshake- by the way i did suffer slght injury but refuse to deal with insurance companies as they will only inflate mine and his insurance -

I'm not surprised. Last year my car was hit by a young driver in a country lane. Everything was sorted and his ins co paid for all my repairs. No one was hurt. End of. However, yesterday, a solicitor rang me, encouraging me to put in a claim for injury. He stressed that it wouldn't matter that I hadn't contacted a doctor and that I could still claim for an injury. When I refused, he attemped to bribe me by saying the average payout was about £2500. I was so incensed that I didn't take his name or the name of his firm. This is why claims are increasing - greedy money grabbing middlemen, so we all have to pay higher premiums.

and perhaps if the insurance companies stopped passing on details to 'ambulance chasers' solicitors the problem might be less. It should be made a criminal offence to pass on details of possible claimants. Solicitor advertising should also be banned (as it use to be). Insurance companies caring about premium rises is about as convincing as a lion caring for a wildebeest kill!

The fraudsters should be refused insurance by all of the companies for a period of 5 years, effectivley taking away their right to drive Checks could be made to see if any of themare driving illegally, without insurance