Insurance Claims on the Rise with Petrol Prices
With the soaring rate of elaborated insurance claims, is being linked to the present crisis that the economy is in, a major factor the ever increasing price at the petrol pump. This has been uncovered in a recent insurance study into claims.
AXA an international insurance company surveyed 2,000 policy holders, over a wide range of insurance firms. When asked about exaggerating claims, under half that were interviewed thought that this was unlawful.
2011 saw a rise of 10% in fraudulent claims and AXA said that insurance firms are a ‘soft target’ for acquiring supplementary income during a recession.
Via the survey it was found that 9% of those, whom had made a claim during the last five years, had fabricated information. Adding an average of £607 to the compensation received. Bogus claims were made for freezer contents losses by raising the actual cost of the food, fake couture goods as originals and for non-existent money or jewellery.
One in 10 insurance holders in the survey said that nowadays they would be inclined to increase the amount they were claiming, than they would have three years hence. 6% of women compared to 12% of men would possibly enter a marked up claim.
Steve Gaywood, AXA’s head of their fraud department said “It’s not a victimless crime, honest customers end up footing the bill through higher premiums.” He also explained that purposely increasing your claim might leave the policy holder in a more serious situation. Mr Gaywood also added “If consumers get caught out they run the risk of having the whole claim turned down as well as facing problems getting insurance in the future.”
Even though over the last six years it can be seen that the number of RTA injuries has fallen by 23%. Motor insurance claims during this time have increased by 70%, filing mostly whiplash applications. The House of Commons Transport Committee have mooted that if claimants legally were made to provide more evidence that they had sustained actual whiplash injuries, car insurance premiums would be considerably reduced.