Commercial policy holders targeted!

11th December, 2015

Insurers Clamping Down on Fraudsters!

The Insurance fraud Enforcement Department (IFED) have been stamping out fraudulent claims recently as they join arms with insurers to battle against misrepresentation and other types of insurance fraud.

IFED have noticed a targeting of commercial vehicle owners by organised fraudsters. With crash for cash and phantom passenger claims being aimed at commercial vehicles because they believe there will be less chance of a dispute as the vehicle is generally not owned by the driver. This kind of fraud is very hard to stop without the full co-operation of the victims. It is another reason why so many commercial vehicles are now being fitted with dash cams.

Recently there has been a trend of success for the IFED and insurers working closely with them. More and more convictions are being held as well as the some heftier punishments for the fraudsters.

The ability to recognise a fraudulent claim is getting sharper and sharper making it harder for tricksters to get past them. Insurance fraud isn’t limited to the organised crime world; even the most regular of folk might make an exaggerated claim taking an opportunistic approach to the situation they find themselves in. In exaggerated household claims, claimants can even go so far as to create fake receipts for items they have never bought. This sort of thing makes regular insurance premiums significantly more expensive, on average it can be as much as a 12.6% rise.

There is still a serious battle going against the organised fraud syndicates which account for a much larger contribution of falsified claims. Further to this a continued increase in professional enablers who coax unaware individuals into making false claims like the ex-Aviva employee who was caught selling on customer claims information. The IFED have suspicions that this was just a small cog in a much larger organised fraud operation, of which they hope that this success will lead to a much bigger bust.

The Association of British Insurers released some stats on the current situation regarding insurance fraud. There were over 130,000 cases of insurance fraud detected in 2014 totalling to over £1.3 billion. That is thought to have only increased further this year.