False claims and policyholders exaggerating the cost of damage costs the insurance industry £1.5 billion a year.
With fraudulent claims on the up and the cost of recent flood damage rising, insurance companies are continuing to crack down on false or inflated claims.
One of the ways they deter false claims is by sharing information with mortgage lenders and credit card providers, which could potentially make it much harder for claims cheats to obtain credit.
John Beadle, RSA's counter fraud manager, said: "The reality is that insurance fraud adds a significant amount to overall claim costs and it's the honest policyholders who are the true victim, Fraud adds five per cent onto their insurance bills"
He added "Consumers need to be aware that in the near future we will be able to monitor fraud across a spectrum of financial products. So if a person commits fraud on a claim and is detected, other companies, like mortgage lenders and credit card providers will be aware of it".
You've been warned!
Monday, 2 June 2008
Tuesday, 27 May 2008
Looking forward to that trip away?
Holidays don't always go without a hitch. Each year UK travel insurance companies receive thousands of claims for compensation from unlucky holidaymakers. The most common claims tend to be for lost baggage, cancellation or medical expense.
But there are some others which can only be described as bizzare - so here are our five of the oddest travel insurance claims we've heard:
1. Monkey Business
Malaysian monkeys caused romantic getaway mayhem when a couple returned to their chalet to find their underwear, clothing and belongings strewn across the resort and neighbouring rainforest. Fortunately the travel insurer paid the claim for the clothes-less couple.
2. Toupee overboard
One unlucky pensioner enjoying a cruise found his toupee overboard after a strong gust of wind lifted it off his head and blew it in to the sea. His travel insurance reimbursed him for the cost of his hairpiece.
3. Don't get stung
A careless holidaymaker paid a painful price when he dropped his wallet down a drain in Natanya. The Briton's claim wasn't for his cash or credit cards though - it was for hospital treatment after he reached down the drain to rescue his wallet, and was stung by a scorpion. Luckily, his travel insurance covered the cost of the treatment.
4. The unhappy campers
An unfortunate family had a shock when they were on a camping trip in a remote field in Wales, following a parachutist from a nearby airbase missing his target and landing on their camping equipment, destroying it. The family weren't covered for accidental damage, so unfortunately their insurer did not reimburse them.
5. Swimming smile
Whilst on a cruise, one sickly pensioner lost his false teeth over the side of the ship when throwing up into the choppy seas of the Bay of Biscay. The misplaced dentures were thankfully covered in his travel insurance policy under lost baggage, so his claim was paid.
But there are some others which can only be described as bizzare - so here are our five of the oddest travel insurance claims we've heard:
1. Monkey Business
Malaysian monkeys caused romantic getaway mayhem when a couple returned to their chalet to find their underwear, clothing and belongings strewn across the resort and neighbouring rainforest. Fortunately the travel insurer paid the claim for the clothes-less couple.
2. Toupee overboard
One unlucky pensioner enjoying a cruise found his toupee overboard after a strong gust of wind lifted it off his head and blew it in to the sea. His travel insurance reimbursed him for the cost of his hairpiece.
3. Don't get stung
A careless holidaymaker paid a painful price when he dropped his wallet down a drain in Natanya. The Briton's claim wasn't for his cash or credit cards though - it was for hospital treatment after he reached down the drain to rescue his wallet, and was stung by a scorpion. Luckily, his travel insurance covered the cost of the treatment.
4. The unhappy campers
An unfortunate family had a shock when they were on a camping trip in a remote field in Wales, following a parachutist from a nearby airbase missing his target and landing on their camping equipment, destroying it. The family weren't covered for accidental damage, so unfortunately their insurer did not reimburse them.
5. Swimming smile
Whilst on a cruise, one sickly pensioner lost his false teeth over the side of the ship when throwing up into the choppy seas of the Bay of Biscay. The misplaced dentures were thankfully covered in his travel insurance policy under lost baggage, so his claim was paid.
Monday, 14 April 2008
How the neighbors DIY could end up costing you.
Homeowners in the south-east of the UK are the worst culprits in terms of DIY disasters, according to new research.
Some 29 per cent of the recorded incidents of damage caused to neighbours' properties as a result of property renovation occurred in the south-east, a new Halifax study indicates.
A cumulative £173 million worth of damage is caused by neighbours undertaking home improvement projects, with one-third of those affected having to cover the cost themselves, while others split the cost.
David Rochester, head of underwriting at Halifax Home Insurance, said: "A number of errant DIYers are not just damaging their properties, but their neighbours' homes too
Some 29 per cent of the recorded incidents of damage caused to neighbours' properties as a result of property renovation occurred in the south-east, a new Halifax study indicates.
A cumulative £173 million worth of damage is caused by neighbours undertaking home improvement projects, with one-third of those affected having to cover the cost themselves, while others split the cost.
David Rochester, head of underwriting at Halifax Home Insurance, said: "A number of errant DIYers are not just damaging their properties, but their neighbours' homes too
Friday, 28 March 2008
You couldn't make it up - Australian version
An elderly man was penalised for the twin crimes of failing to keep one’s savings in a secure bank and keeping secrets from one’s wife when the wad of cash he had secretly stashed in the couple’s rarely-used wood fire oven went up in smoke when she decided to prepare (an also rare) home-cooked meal.
All in a day’s work apparently for the chaps at Allianz Australia – according to a list the insurer released today of strange but true insurance claims.
“We hear quite a few interesting stories through our claims ..." says a spokesman for the company "… from a car crash caused by a ghost to horses eating car interiors.”
Perhaps, surprisingly, many of these claims are successful.
“You couldn’t make some of these stories up if you tried,” he said.
“It goes to show that truth really can be stranger than fiction.”
Some of the more unusual claims paid by Allianz in 2007 include an Adelaide-based woman who was robbed of her extensive (and apparently expensive) collection of sex toys, a rural NSW-based family whose home inside a hill was destroyed when a cow fell through their skylight and a northern Queensland-based man who’s car was written off when he swerved to avoid hitting the local celebrity ghost.
While Allianz were somewhat doubtful about the circumstances of the last claim, it was paid on the basis that it could not be proven that ghosts do not exist.
All in a day’s work apparently for the chaps at Allianz Australia – according to a list the insurer released today of strange but true insurance claims.
“We hear quite a few interesting stories through our claims ..." says a spokesman for the company "… from a car crash caused by a ghost to horses eating car interiors.”
Perhaps, surprisingly, many of these claims are successful.
“You couldn’t make some of these stories up if you tried,” he said.
“It goes to show that truth really can be stranger than fiction.”
Some of the more unusual claims paid by Allianz in 2007 include an Adelaide-based woman who was robbed of her extensive (and apparently expensive) collection of sex toys, a rural NSW-based family whose home inside a hill was destroyed when a cow fell through their skylight and a northern Queensland-based man who’s car was written off when he swerved to avoid hitting the local celebrity ghost.
While Allianz were somewhat doubtful about the circumstances of the last claim, it was paid on the basis that it could not be proven that ghosts do not exist.
Thursday, 20 March 2008
DIY fans expected to cause up to £25 million damage this Easter
DIY enthusiasts could cause up to £25million worth of damage in British homes this Easter weekend - one of the most popular periods for taking on home improvements.
Research suggests that a clumsy 16 per cent of people have damaged their homes or their property carrying out a DIY improvement and the industry expects to pay out anything up to £25 million for DIY-related damage this Easter.
A survey of 2,000 householders by Allianz Insurance also found that nearly 30 per cent of people admit they have injured themselves or someone else while carrying out a DIY job. This figure is supported by the fact that an estimated 200,000 DIY enthusiasts turn up at hospital each year.
Worryingly, 55 per cent admitted to starting a DIY job without the correct tools and almost 50 per cent said that they had started a DIY job without really knowing how to do it - including electrical and plumbing jobs.
So if you're looking to start those long-awaited home improvements this weekend - you just mind how you go!
Research suggests that a clumsy 16 per cent of people have damaged their homes or their property carrying out a DIY improvement and the industry expects to pay out anything up to £25 million for DIY-related damage this Easter.
A survey of 2,000 householders by Allianz Insurance also found that nearly 30 per cent of people admit they have injured themselves or someone else while carrying out a DIY job. This figure is supported by the fact that an estimated 200,000 DIY enthusiasts turn up at hospital each year.
Worryingly, 55 per cent admitted to starting a DIY job without the correct tools and almost 50 per cent said that they had started a DIY job without really knowing how to do it - including electrical and plumbing jobs.
So if you're looking to start those long-awaited home improvements this weekend - you just mind how you go!
Tuesday, 18 March 2008
Earthquake could result in 3,250 home insurance claims
The insurance industry is bracing itself fro as many as 3,250 home insurance claims as a result of last week’s earthquake, which reached 5.2 on the Richter Scale.
It estimates that collectively these could run into tens of millions of pounds. However, with one in 20 households without buildings insurance, the bank warns that there will be a number of homeowners who will find themselves having to foot significant repair bills themselves.
Those who think that earthquakes are rare and that it won't happen to them should consider this.
There are more earthquakes in the UK than in any other European country – so there!
It estimates that collectively these could run into tens of millions of pounds. However, with one in 20 households without buildings insurance, the bank warns that there will be a number of homeowners who will find themselves having to foot significant repair bills themselves.
Those who think that earthquakes are rare and that it won't happen to them should consider this.
There are more earthquakes in the UK than in any other European country – so there!
Monday, 3 March 2008
Barking Mad
An estimated 1.8 million pet insurance claims are made in the UK against veterinary treatment for cats and dogs every year. A further 18,000 claims are also made for other reasons including when the animal is lost or stolen. However around 75% of uninsured cat and dog owners pay out for an estimated 5.5 million veterinary treatments annually.
According to a supermarket insurance company who shall remain nameless but would be better employed making sure they had enough bread and milk on the shelves of my local one, the most common pet insurance claim is for skin tumours, followed by general poor health where the cat or dog is said to be "just not his/herself".
According to a supermarket insurance company who shall remain nameless but would be better employed making sure they had enough bread and milk on the shelves of my local one, the most common pet insurance claim is for skin tumours, followed by general poor health where the cat or dog is said to be "just not his/herself".
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