Mobile phone insurer Policy Administration Services (PAS) has launched an identity theft insurance product.

PAS director of sales and marketing, Clive Richardson said the product, Identicare, was developed after PAS discovered numerous cases of identity fraud when assessing mobile phone claims.

The policy provides access to credit reports and £25,000 worth of cover against the cost of repairing the policyholders'credit rating, which Richardson said could be used to cover lost income, legal fees and the replacement cost of documents.

The product is available online at PAS is also in talks with banks and credit card companies to sell the product under their own brands. Richardson said that PAS was aiming to sell 100,000 policies in the first year.