Insurance frauds in the UK car insurance supermarket are on an alarming increase. About 5.2 million pounds worth of fallacious insurance claims have been applied and approved. These fraud claims have been causing the car insurance industry a loss of 44 pounds every month.
A research study on insurance has revealed that as many as 36,000 UK parents list the names of their children as spouses on their policies. This is done in order to decrease the insurance premiums. This act is prosecuted as a fraud case. One of the most common forms of frauds in the car insurance supermarket is opportunistic retail fraud. This involves exaggeration of the real claims by the people to get more payouts.
Crash for Cash is a relatively new form of insurance fraud that individuals act to in order to extract money from the car insurance companies. This practice involves an intention causing of accident for claiming money by the car insurance providers. This type of insurance frauds usually involves both parties to stage the accident and claim money from their respective car insurance companies. Such scams are highly common at Centenery Way in Manchester and M65 in Lancashire.
A total estimate of all these claims is approximately 350 million pounds annually. A revelation by The Association of British Insurers shows that in spite of the risk of being caught, one in every five people would go for applying a fake insurance claim. The consequences of being caught for a fraudulent claim would lead to a criminal record against the insured and hard struggles in accessing any service in the future related to finances. It is advisable to stay away from any acts of fraudulent claims and be an honest motorist to avoid any consequences.
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