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Crackdown on motor insurance fraud

Wed, 31 Aug 2005

A leading insurance company is hoping to increase Motor Insurance fraud detection.

Axa insurance is to launch a Special Investigations Unit that will specifically target those drivers making fraudulent claims. The company set-up a similar unit in Ireland in 2002 and believe that it has been successful in reducing the number of false claims.

In one instance, the Irish unit uncovered an attempt to claim £13,000 following a false burglary claim by two customers.

According to the Association of British Insurers, payouts over false claims total around £1 billion, with one in ten Motor Insurance claims being made fraudulently.

Tim Scott of AXA said: "Claims involving some element of fraud have continued to escalate over the past few years.

"Bogus losses, exaggerated personal injuries claims and highly organised scams are costing the insurance industry dearly and have served to push up the cost of premiums for everybody."

AXA is warning that any evidence of fraud will be passed on to the police for further investigation and possible prosecution.


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