Insurance fraud is on the increase and the knock-on effect is increased insurance premiums for everybody.
Lloyds has received personal injury claims from people who say their injury related to a car accident or a fall on the pavement, when in fact the injury was sustained during a fight!
Another example of downright fraud occurred in the United States. A middle aged woman claimed that she had to leave her job as a teacher because an accident left her totally disabled. The woman was awarded personal injury compensation benefits but subsequently began working at a youth sports camp. She was arrested for her fraud.
Bogus claims against motor insurance policies are also becoming more commonplace. One man even pushed his car over the side of a cliff in the hope of getting compensation from his insurer.
The Association of British Insurers says that more sophisticated fraud detection methods are starting to pay off. At the end of 2009, up to 2,000 dishonest claims per week were uncovered, with a net worth in excess of £16 million.
Times have been hard for everybody since the economic downturn. The lack of ready cash, coupled with the multitude of adverts informing people that personal injury solicitors can win them mega bucks, no doubt contributes to the increase in fraudulent claims. However, fraud doesn’t pay dividends in the long run and as technology gets ever more sophisticated, the chances of getting away with it are decreasing.
Meanwhile, the insurance branch of HSBC bank has recently implemented ISO Claims Outcome Advisor to assist its motor claims division.
ISO Claims Outcome Advisor was designed by Insurance Services Office Limited, a leading UK firm dealing with personal injury claims. The COA software helps everybody associated with the claims process navigate the necessary legal, medical and occupational topics.