Would you lie to become £607 richer?

Share This Article

• Facebook
• Twitter
• Digg it
• Print

Not many of us would turn down £600 if we had the chance. But would you bend the truth to get your that amount of cash?

When we’re children, we’re told that lying is wrong – plain and simple. However, thousands of Brits seem to take a more relaxed view when it comes to the matter of exaggeration ­– especially if an insurance company is involved.

According to research from insurance firm AXA, an estimated 200,000 people made an exaggerated insurance claim last year – adding an extra £607 to their claim.

The kind of lies people tell

A massive 58% of respondents didn’t believe it was dishonest to conceal a previous insurance claim and 56% have no moral compunction over falsely claiming windows and doors had been locked when a burglary occurred.

Almost half of respondents would willingly submit a receipt belonging to someone else when making a claim and 46% would deliberately damage an item.

Using its technical term, this is known as opportunistic retail fraud and involves exaggerating the value of a genuine claim in order to make a profit.

Who’s most likely to bend the truth?

Londoners make the highest number of dubious claims and also add the most value to an exaggerated claim, according to AXA.

What’s more, men are almost twice as likely as women to have made an exaggerated home insurance claim.

­­Cameron cracks down on whiplash claims

Exaggerated claims are also a concern for the car insurance industry, especially the growing whiplash culture.

‘A claims culture has developed in this country to the extent that it has become accepted that if another vehicle hits your car, you should make an injury claim regardless of how serious the injury is,’ says Simon Douglas, Director of AA Insurance.

David Cameron last month attended a summit with insurance experts to address the rising cost of premiums and cut the number of personal injury claims.

Following this meeting, the government announced a raft of measures to cut down on personal injury claims, such as a reform of the ‘no win, no fee’ payment system.

What this means for honest policyholders

Unfortunately for people who stick the rules, these inflated or false insurance claims have an impact on all of us.

According to AXA, exaggerated home insurance claims add £13 to the cost of every insurance policy.

The consequences are even more extreme for drivers. Data from the Association of British Insurers reveals that the cost of whiplash claims increases average car insurance costs by £90.

What happens if fraudsters get caught?

If a person is caught exaggerating the value of a claim, the insurance company may refuse to pay out and invalidate the policy. Furthermore, the person may be unable to find insurance in the future – or face far higher premiums than they would otherwise have done.

In more extreme cases of insurance fraud, the perpetrators could face a prison sentence.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

Tags for this article