UK: Over 4,000 fraudulent insurance applications made every week
Tuesday, 08 25 2015, Category: Insurance and Reinsurance, Country: United Kingdom
The figures from 2014 show that there were more than 212,000 dishonest insurance applications for car insurance, an increase of 18% on the previous year.
Fraudulent applicants frequently ‘forget’ to disclose previous claims or unspent convictions, or provide a false address or postcode in order to claim to live in a lower-risk neighborhood.
Another reason is a practice called fronting – where parents insure a vehicle in their name when it is mainly driven by a son or daughter.
The ABI also uncovered a number of scams known as ‘ghost broking’, which involve illegal insurance advisors selling fake car insurance policies.
These result in motorists driving around thinking that they’re insured, but in reality they face prosecution for driving without valid insurance, which can also mean having their vehicle seized and crushed.
Source: Express UK