Insurers uncovering more fraud

The Association of British Insurers (ABI) claims the number of fraudulent claims detected has risen by 70 per cent over the last three years.

Some see a fraudulent claim as a quick way to clear debt, the ABI said.

But insurers are cracking down on dishonest motorists, uncovering fraudulent claims worth £260 million last year.

One car owner caught out had claimed his car had been stolen but it was proved that he had pushed it over a cliff, and planned to use the insurance payout to meet his hire purchase payments.

Another policyholder, claiming for damage to her Land Rover when it hit the front of her house, said it was caused when her foot slipped off the brake. However, the damage was caused deliberately, following an argument with her partner.

Nick Starling, the ABI's director of general insurance and health, said: "Insurance fraud is no victimless crime.

"Honest motorists pay through higher insurance premiums – an extra £40 a year on average."

Not only will motorists caught cheating on their insurance claims face difficulty getting insurance or credit later in life, they could also receive a criminal conviction, the ABI warned.

In one case, a Rolls Royce owner claimed £10,000 for the alleged theft of the front grill, hubcaps, steering wheel, seats and bonnet mascot. However, they were later found in his home by the police, and he received a criminal conviction.

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