Fraud – a growing business

A record £840MILLION of fraudulent claims were uncovered in the UK last year.

More than 120,000 fraudulent claims were filed – up by 14 per cent on the previous year

Over half related to home insurance. The Association of British Insurers said the bogus claims had been uncovered in time to prevent payouts.

But other suspect claims had to be paid because they could not be proven as fraudulent. This resulted in premiums having to go up.

Bosses blamed the growth of bogus claims on the recession and the UK’s growing “compensation culture”. They included a man who said he fractured a hand falling over a pothole, when in fact he had punched a wall and a woman who claimed she fell over an uneven pavement had really jumped down a flight of stairs to flee a security guard.

ABI chief Nick Starling said: “Reducing fraud remains an ongoing battle for the industry.”