Wednesday, May 23, 2007

Insurance fraud 'costs UK £1.6bn'


Fraudulent insurance claims cost UK insurers a total of £1.6bn a year, according to a report.

False claims cost the industry £4m a day, adding £40 to the average premium paid by policyholders, the Association of British Insurers (ABI) said.

Deliberate spills or cigarette burns on carpets and furniture, in order to make false insurance claims, were common examples of fraud, the ABI said.

The trade body canvassed the views of almost 7,000 people for its survey.

See full Article.