Anyone who has an insurance policy will know how frustrating it is when year after year the premiums seem to get higher and higher. What’s more annoying is the fact that dishonest, fraudulent claims are a large contributing factor to this. In fact, according to industry figures, the number of insurance liability fraud claims jumped by 75% last year alone. One of the fastest growing areas targeted when making a fraudulent claim is that of claiming for personal injury.
The Good News!
This is depressing reading so far but the good news is that premiums fell in 2014 and this was partly the result of increased detection of fraud by insurance companies. As a personal injury firm of solicitors we also do our best to vet claims which come through to us and weed out any potentially fraudulent claims. The result? The average cost of a motor insurance policy went down by 5% and average cost for home contents insurance went down by 3%.
The Association of British Insurers claim that fraudsters are now more likely than ever to be caught and the consequences are serious. Commenting on the repercussions James Dalton, the ABI’s director of general insurance policy stated:-
‘As well as the possibility of serving a custodial sentence, they will find it difficult to obtain vital financial services such as mortgages and loans, future job prospects are likely to be adversely impacted, and family relationships suffer.’
Just recently Amy Laban, a model and semi-professional footballer, has been jailed for two months for making up a personal injury claim. Laban failed to attend medical appointments to verify her injuries following a road traffic accident in 2012. Investigators obtained photographs of Laban taking part in demanding fitness activities as well as taking part in a sky dive – all whilst she claimed to be suffering from whiplash injuries. During sentencing HHJ Gosmark said: ‘The Courts have stressed repeatedly that those who commit this [false claims] must receive prison sentences.’
How can you help drive down and keep down insurance premiums? If you suspect someone of insurance fraud report them to the Insurance Fraud Bureau (IFB) Cheatline by calling 08004220421.