The F Word and your Bank Balance

The F word in this case is Fraud and Insuranceinsurance fraud
Fraud means that the average premium paid by- If you live in the North of England you are 1.7
policyholders is increased by £40 per year,time more likely to commit insurance fraud
according to a recent report.- If you have unsecured debt over £1,000
With 1 in 11 claims reported to be in some wayyou are twice as likely to commit insurance fraud
fraudulent, false claims are costing the insurance- If you have a household income of less than
industry £4 million a day. And with 11% of£10,000 a year you are 2.6 times more likely
adults (or around 5 million people) havingto commit insurance fraud
committed insurance fraud in the past 12 months,Of the 7,000 people questioned in the ABI
fraud is on the increase according to thesurvey, 85% of the fraudulent claims involved the
Association of British Insurers (ABI).exaggeration of the value of a genuine loss with
So who are these 5 million people?15% of claims relating to a totally made up loss.
And what can be done to stop them taking"Insurance fraud means that honest people and
money indirectly out of our bank accounts?businesses throughout the UK are being punished
Well if you're a male, aged under 45 and arethrough no fault of their own", said Mark Burdett,
paying under £500 a year for your insurancethe Marketing Manager for The UK's Business
whilst living in rented accommodation in the NorthInsurance Brokers, Northern Counties.
of England then maybe it's you as based on the"The cost of insurance fraud is on the increase
average, the report says that:and I believe the government should be doing
- People over 45 are less likely to commitmore to discourage fraudulent behaviour. Tougher
insurance fraudpenalties in the form of criminal prosecutions as
- If you pay over £500 for your insurancewell as highlighting the seriousness of insurance
you are 50% less likely to commit insurance fraudfraud could both help reduce the number of
- Homeowners are less likely to commit insurancefraudulent claims and ultimately reduce what we
fraudall pay for insurance.
- Males are 1.6 times more likely to commit