Tuesday 9 April 2013

Four shocking insurance scams

With insurance fraud costing us all £50 a year, we reveal four of the most egregious cases uncovered by investigators.

Each week, insurance companies uncover a massive 2,670 cases of fraud worth £19 million, according to the Association of British Insurers (ABI).

On an individual level, bogus insurance claims add £50 to the average policyholder’s annual insurance bill.

False home insurance claims are the most common type of fraud with 71,000 cases uncovered during 2011. Conversely, car insurance fraud is the most costly and the insurance industry saved £541 million in 2011 by exposing 45,000 illegitimate claims.

While insurance fraud may be alarmingly common, some cases are more shocking than others. Here are four of the more extreme cases published alongside the ABI’s research.

CASE ONE: The weakest necks in Europe

It’s not difficult to believe that one person could be liberal with the truth ­&...

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