Insurers 'detect more fake claims'

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

The Association of British Insurers (ABI) revealed that 133,000 0 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 theircar 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 0 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."

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