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Insurance clampdown

Insurance industry funds police unit and crooks’ register to tackle claims fraud

Insurance clamdown

By Julie Sinclair

19th July 2011

Insurance cheats could now find their fraudulent days are numbered, as the industry launches a two-pronged attack to stop them in their tracks.

Fake claims, including imaginary whiplash, are responsible for racking up a whopping £2bn insurance bill every year – adding approximately £40 to every motorist’s premium, according to the Association of British Insurers (ABI). But a new dedicated police force, funded by the insurers themselves, has now been set up to tackle that.The ABI says a 35-strong City of London Police unit will investigate cases across the UK, including organised fraud involving teams of criminals working with doctors and solicitors. Suspected crooks will be brought to trial in a bid to recoup some of its losses.

This isn’t the only trick up the industry’s sleeve either. The ABI has announced it’s launching a national Insurance Fraud Register, too – again funded by members. Unlike existing insurance databases, it will contain details of all known cheats, who can then be easily identified if they fail to reveal their fraudulent past when making fresh claims.

An ABI spokesman admitted: “At the moment, insurers rely on people being honest.” But that will all change with the new register, which insurers have agreed to fund for three years.

Nick Starling, ABI’s Director of General Insurance and Health, said: “The new database ensures that there is no hiding place for anyone caught making a bogus or exaggerated insurance claim.”

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2 Comments

The Claim Game

I agree with the above report, but the industry should close down the so called solicitors that are targeting the public with e-mails and texts prompting people to claim! nearly every week I get a text stating that I could claim for an accident that I supposedly had! Well What Accident!
These sort of companies act like corporate prostitutes and should be closed down!

By SUCARBS on 21 July, 2011, 9:28am

People wouldnt need to make fake claims if the insurance firms didnt empty our pockets with their unjustifable prices in the first place.

So if this is succesful are we going to see a reduction in our premiums? I will put my house on it we will not. So how about instead set up a task force to put right the crooks in the insurance industry first!

By AndyG on 25 July, 2011, 1:19pm

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