False insurance claims to £1bn

Fraud uncovered by the country’s insurers has topped £1 billion for the first time, with 340 questionable claims detected every day.New figures out later this week will show the value of dodgy insurance claims hit nearly £1.1 billion in 2012, up £110 million on the year before. The level of fraud is nearly double that recorded in 2007 and being driven by a surge in false whiplash claims.

The Association of British Insurers said fraudulent motor insurance claims totalled £610 million, 55 per cent of the total, from 42,700 dishonest claims.
Across the country, fraudulent claims are thought to add around £50 to the premiums of “honest” customers.
Industry insiders said “no win, no fee” lawyers had spiralled out of control. One told the Daily Telegraph: “The actual number of fraudulent claims has gone down, but the value of those we’re uncovering has gone up. It suggests people are staging ever more elaborate crashes.”
Among the fraudsters detected by insurers are a man caught on camera playing rugby, while trying to claim £1 million in damages for a workplace accident.

By Steve Hawkes
Curtscy Daily Telegraph