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Insurance: Fraud

Answer

No figures are available for the number of victims of, or for the average loss incurred from, personal injury fraud. Across all forms of insurance the ABI estimates that fraud adds, on average, an extra £50 a year to the annual insurance bill for every UK policyholder.

However, we have already seen a fall in premiums paid by motorists following the implementation of Government reforms in April 2013. The latest ABI quarterly index shows a 9% drop in actual premiums paid in the last year. The Government fully expects insurers to continue to meet their commitment to pass on the savings from these and other reforms to consumers.

The Government is committed to turning the tide on fraudulent personal injury claims. To this end we are working closely with stakeholders across the industry to secure better data on motor accident cases, including the number of fraudulent cases.

No estimate is available of any cost savings that might accrue from clarifying the courts’ powers to strike out claims that are exaggerated or fabricated. However, we are considering what reform might be appropriate to the law in this area.

Secondary information

Type

Written question

Reference

195397; 579 c398W

Session

2013-14

Subjects

Fraud Insurance

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk