ABI figures suggest yet another rise in insurance fraud

The Association of British Insurers (ABI) has released alarming statistics stating the cost of fraudulent insurance claims has risen to £1.3bn in 2013. This is an apparent increase of 18% on 2012.


United Kingdom – WEBWIRE – Thursday, July 17, 2014

he public want a fair system where injured people get adequate compensation and medical evidence is required to prove the injury. The insurers must end their “cheaper to pay than investigate” mentality.

The Association of British Insurers (ABI) has released alarming statistics stating the cost of fraudulent insurance claims has risen to £1.3bn in 2013. This is an apparent increase of 18% on 2012. The most common fraudulent claim type was motor insurance claims - up by 34% from 2012 to 59,900.

Despite their statistics, only 85 people have been convicted of insurance fraud since 2011. Plus in 2013, a raft of changes to personal injury claims were introduced, including lower fixed fees for the majority of road accident claims.

It is thought that the figures released by the ABI are misleading and paint a far higher number of fraudulent claims than seems true. Insurers are basically saying the general public are committing more and more insurance fraud, whether home insurance claims, holiday insurance or other fraud and seem to use this as a justification for higher insurance premiums.

The figures also fuel beliefs that there is a compensation culture in the UK, and that more needs to be done to stop fraudulent claims. This may lead to further restrictions and more people not having access to justice when they have been genuinely injured in an accident. In our experience, the number of clients claiming after a road accident is declining and many honest clients are becoming increasingly worried about claiming.

Alastair Fernie, Manager Director at Freeclaim Solicitors, commented on the figures saying, “The insurance industry is continuing to foster the myth of an increasingly fraudulent claims culture. After already undergoing radical changes in personal injury last year, we need to be extremely careful about any further changes that may make it even more difficult for honest accident victims to claim compensation and get access to justice.”

The Association of Personal Injury Lawyers (APIL) also hit back at the figures, believing they are a reflection of insurers paying people off rather than fully investigating a claim. A spokesperson from APIL commented, “Insurers have the answer to stopping fraudulent claims at their fingertips and are responsible for offering compensation before any proof of injury is obtained. The public want a fair system where injured people get adequate compensation and medical evidence is required to prove the injury. The insurers must end their “cheaper to pay than investigate” mentality.”

At Freeclaim Solicitors we believe it is extremely important that everyone has access to justice and legal assistance when needed. We know how important it is to fully investigate a claim and obtain the relevant medical evidence. Our expert solicitors have many years’ experience dealing with all types of personal injury claims including, road traffic accidents, accidents at work, industrial disease, slip, trip and falls, as well as more complex brain and spinal injury claims.

If you have been involved in an accident that wasn’t your fault, speak to Freeclaim Solicitors today on 0800 612 7340. Freeclaim Solicitors have built a reputation over 25 years with an outstanding track record of success. Visit http://www.freeclaim.co.uk to find out more.


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