It is understandable that insurers are concerned by the rising levels of fraud but it's hardly a new problem, it is simply becoming worse.
I remember a case when a claim was submitted to a major insurer for a stolen car audio. The invoice did not look right and I carried out my own investigations and found that it had been altered by the policyholder to increase the amount.
I informed the insurer which later issued a cheque for the forged price.
On querying this it informed me that it had decided to pay the claim because it did not have enough evidence to refuse the claim and it was easier to pay than dispute it.
This is despite the supplier of the invoice confirming to me that the document had been altered.
This was in the days before branch closures and staff cuts. With claims being taken away from brokers via helplines and direct correspondence, how can the reduced insurer's workforce possible hope to have the resources to cope with the increase in fraud?
R Roberts
Mid Counties broker
