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Insurance fraud claims hit record

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Fraudulent insurance claims hit a record high in 2009, with an average 2,000 dishonest claims worth £16 million every week, research shows.

Insurers detected a total of 122,000 fraudulent claims, worth a record £840 million, with home insurance counting for more than half of these - 62,000 claims.

The development of better fraud detection methods and people chancing their arm with dishonest claims due to the financial pressures of the recession are thought to have caused the rise in cases, a 14% jump from 2008.

Fraudulent car insurance claims valued at £410 million represented nearly 50% of the total.

The value of dishonest claims was almost twice as much as five years earlier, with 4% of all claims by value ruled fraudulent.

Bogus personal injuries claims, which command an average £25,000 pay out , accounted for the majority of 8,500 misleading liability claims.

© Press Association 2010