Car_Insurance_fraud

Although measures are taken to tackle the matter, like the introduction of Continuous Insurance social control and therefore the Motor Insurance information, it’s calculable insurance fraud prices the business quite £1 billion a year.
Car_Insurance_fraud
And, ultimately, it’s honest motorists United Nations agency obtain the bill as a result of dishonorable claims push up the value of annual premiums by regarding £50.
What is insurance fraud?
Insurance fraud is something that tries to cheat the insurance method – from giving inaccurate data on a quotation, to creating a false claim for whiplash.
On the flip aspect, AN insurance underwriter wittingly denying a client a profit that's due is additionally thought of insurance fraud.
Car_Insurance_fraud
Car insurance fraud is that the commonest and most expensive variety of fraud, and it’s on the rise.
The latest figures from the Association of British Insurers (ABI) show that the sixty seven,000 recorded cases in 2014 drawn a twelve-tone music year-on-year increase.
The cost of those dishonorable claims was £835 million, a third increase on the 2013 figure.
Types of motor insurance fraud
Application fraud – If you fail to disclose or misrepresent data at the applying stage (say you allow out the main points of AN accident or claim, don’t report any points on your licence, or fail to say any automotive modifications), this can be thought of insurance fraud.
It this involves light-weight after you build a claim, you may notice the pay-out is restricted or maybe that your policy is said void. that might value you thousands of pounds if you’re deemed accountable for AN accident.
Even simply creating some ‘tweaks’ at the quotation stage, like speech communication your automotive is unbroken on a route once it’s really unbroken on the road, may well be enough to invalidate your policy.
And it doesn’t matter if your non-disclosure was a real mistake, you’ll still have your insurance known as into question by the insurance underwriter.
Fronting – Adding what’s known as a ‘named’ driver is an efficient thanks to cut the price of canopy. however if you declare the named driver to be the most driver in a very bid to bring the premium down (because they’re a lower risk driver than you), you’ll be guilty of a sort of fraud called ‘fronting’.
Fabricated or exaggerated claims – this can be a sort of opportunist fraud whereby somebody United Nations agency is concerned in AN accident can submit a claim for private injury, sometimes whiplash, despite the fact that they need not been hurt within the crash. instead, they could exaggerate their symptoms within the hope of receiving a bigger quantity in compensation.
Crash-for-cash – this can be once a driver deliberately causes AN accident so as to get a claim. this could involve 2 motorists contriving to crash their cars and monophonic the compensation claim between them, or one automobile inflicting AN accident with AN unsuspecting automobile. business vehicles square measure usually targeted in crash-for-cash scams.
Phantom traveler claims – this can be once AN accident has occurred and injury claims square measure submitted for variety of passengers United Nations agency weren’t really gift at the scene. this could be as a part of a pre-planned crash-for-cash scam or AN opportunist crime at the scene of a real accident.

Contrived accidents – This involves creating a claim for harm as a part of a collision that ne'er really occurred. a preferred approach of doing this can be to maneuver AN already broken automotive to AN accident black-spot to make the impression AN accident has occurred that the insurance underwriter foots the repair bill.