Insurers 'detect more fake claims'

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29 July 2011 at 11:38

Insurers are spotting and blocking more fraudulent claims, figures have shown.

The Association of British Insurers (ABI) revealed that 133,000 false claims were detected in 2010, which is a 9% increase on the previous year.

Overall, the value of these fraudulent claims reached £919 million, which is also a 9% increase on the previous year.

The news that more fraudsters are being caught in the act could be good news for British motorists who see around £44 a year added to their car insurance bills as a result of these claims.

There were 44,000 incidents of fake car insurance claims uncovered by firms, which were worth a total of £466 million.

But results showed that the highest number of fake claims were made on home insurance policies, as there were 66,000 false or embellished claims found.

Nick Starling, the ABI's Director of General Insurance and Health, said: "The savings made by weeding out fraudulent claims would otherwise end up being paid for by honest policyholders through higher premiums."

Copyright © Press Association 2011