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Businesses carry out motor insurance fraud

Thu, 08 Sep 2005

Many UK businesses are guilty of committing insurance fraud worth around £550 million a year.

A new study, conducted by MORI, on behalf of a number of leading insurance-related bodies, discovered that one in seven claims submitted by firms are thought to be exaggerated and one in three of the country's largest businesses often supply misleading information when applying for cover.

The research also revealed that one in 12 businesses believe that over claiming on their property or Motor Insurance cover is acceptable, especially amongst smaller firms.

The most costly claims, which can push up average premiums, involve those which are entirely false, often because they are for high value items to justify the risk.

"This is the first research of its kind and the messages are stark - the £550 million price tag and the fact that 15 per cent of claims are exaggerated highlight the challenge we face as an industry," said John Freeman, director of investigation services at Capita Insurance Services

He added: "Fraud is not a victimless crime: it pushes up the cost of insurance for everyone. We have to protect honest policyholders, as far as possible, from unnecessary rises in premiums."


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