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Fraudsters Can Push Up Your Insurance Premiums
Around forty pounds every year is added, on average, to insurance premiums as a result of false claims which cost the industry approximately £4 million per day, according to a report by the Association of British Insurers. In 2009, more than 2,000 fraudulent claims were detected every week. The survey conducted by the ABI revealed that 10% of Britain's population has at some point attempted to either exaggerate or completely fabricate an insurance claim. False insurance claims fall into one of two categories - hard and soft fraud. Hard fraud is when somebody deliberately sets out to make a false claim, often by damaging his or her own property to make an inflated claim. Soft fraud is typified by those who attempt to overvalue their possessions when taking out an insurance policy. This is more difficult in the case of say, car gap insurance, where the insurer will want to see receipts and invoices for the vehicle being covered - but still not impossible for the serious criminal. Fraudsters have also been known to exaggerate the cost of damage to cars, sometimes with the collusion of a corrupt garage mechanic. Specialised insurance companies such as those offering extended car warranties can be targeted by fraudsters just as much as standard auto insurance firms. One of the most common types of soft fraud is the exaggeration of personal injuries when involved in an accident. Back pains or headaches - both difficult to disprove - are commonly cited by fraudsters attempting to maximise on a compensation claim. Insurance claims for personal injury are a firm favourite for both occasional and habitual fraudster. One claim cited an injury serious enough to put a semi-professional footballer out of action; however, this was found not to be the case when the man was spotted in a match photographed by his local newspaper. In another instance, a woman made a claim for injuries sustained due to tripping on a paving stone which was apparently unsafe. She was in fact caught shoplifting and had become a cropper whilst running away from security guards. Stories like this may provide an amusing diversion within the doom and gloom of our daily newspapers; however, it is such cases which add a little each time to our own insurance premiums. Home contents insurance can also be targeted; the number of "spillages" on expensive rugs or sofas also inflate our premiums thanks to false claims being made in this area. False claims made by holidaymakers on travel insurance policies are yet another popular line for fraudsters. Many will return from a trip abroad, claiming to have lost expensive items like leather jackets, iPods or digital cameras, which they never owned in the first place. False claims have rocketed during these harsh economic times, as more people are tempted into crime to try to ease their own financial burdens. Included in this group are some small business owners who have made false claims after inflicting damage onto company property of goods in the hope of an insurance "windfall". This is a twofold temptation, allowing a business to cease trading apparently through no fault of the owners, while trying to secure an illegal insurance payout. Most people who make a false insurance claim do not really believe that they are engaging in a criminal activity. Making a false claim is seen by some as a form of repayment by the insurance company for the money they have had through the householder or driver's premiums. Whilst they may think they have won by costing the insurance company money, it is these very people who are causing everyone else's premiums to be rising too. Article Directory: http://www.articledashboard.com Stephanie Andrew writes and publishes articles for SEO consultants ePage Solutions whose clients include Future 45 Ltd. - helping UK motorists save money on their gap insurance by buying direct from the insurer. |
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