The Association of British Insurers has issued a warning that, “people are increasingly putting their insurance cover at risk by cheating to get a better deal.” The ABI said its members, which include most of the UK’s P/C insurers, “are uncovering a growing number of cases of ‘front end fraud’, where the customer has lied or failed to disclose material information to get cheaper insurance.”
The ABI selected four of the most “common deceptions,” as follows:
– ‘Fronting’ – where parents add their son or daughter to their motor insurance policy as an occasional named driver, when in fact they are the main driver.
– Not disclosing motoring convictions, ranging from a speeding conviction to drink driving. In one case, a policyholder whose vehicle was stolen had his claim for £7,000 [$10,161] rejected, as it was discovered that he had failed to disclose two convictions for driving without insurance.
– ‘Forgetting’ about previous claims, such as motor accidents and burglaries.
– Under-estimating alcohol and tobacco consumption when applying for life and health insurance.
Nick Starling, the ABI’s Director of General Insurance and Health, stated: “Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences. Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal.”
Source: Association of British Insurers – www.abi.org.uk
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