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Motor insurance fraud cost car insurers £800 million last year.
And far from being the victimless crime many people believe it to be;
in the end all motorists have to pay with increased premiums. About 5.5%
of every motorist's premium covers fraudulent claims.
Direct car insurer, Admiral has surveyed 1,200 UK motorists and discovered
that while most people realise insurance fraud affects all drivers, nearly
10% still believe it is acceptable. While research by the Association
of British Insurers, reveals 7% of motorists have already made a fraudulent
insurance claim.
Admiral managing director, Jane Stone, said, "Although 7% doesn't
sound much, when you consider there are 30 million private cars on the
road in the UK, you are looking at 2.1 million drivers. We want people
to be aware that fraud is not a victimless crime, insurance companies
cannot just write this money off and in the end we all pay with higher
premiums."
There are many different levels of insurance fraud, from those who exaggerate
a genuine claim to increase their payout, to gangs or criminals who make
a career out of fraud by staging multiple car crashes.
But now the insurers are fighting back. Admiral is one of 30 insurance
companies that contributes to the Claims Underwriting Exchange. This is
a database listing details of all claims in the UK. The companies can
cross-reference any new claims with the database to see if there are any
links and so detect fraudulent claims.
Admiral, like other insurers, also checks all cars on the Motor Insurance
Anti-Fraud and Theft Register (MIAFTR). It tells them if a car has been
previously written off or stolen. MIAFTR is the first line in detecting
fraud.
But the best weapon of all against theft is human skill and intuition.
Admiral's Claims staff are extensively trained so they can identify fraud.
And, if they need to they will appoint a loss adjuster to personally interview
someone they are suspicious may be committing a fraud.
Jane Stone, said, "We pride ourselves on our well-trained Claims
staff, they are the best defence against fraud. We want to be able to
reduce the cost of insurance and by taking the time to investigate anything
we find suspicious, we can hopefully reduce the fraudulent claims."
Issue date: 02-08-03
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