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Lying when buying insurance on the increase
INCREASING numbers of people are running the risk of invalidating their insurance cover by lying when they take out a policy in a bid to get a better deal, a trade body warned today.
The Association of British Insurers (ABI) said its members were uncovering a growing number of cases of front end fraud, under which customers lie on application forms or fail to disclose important information to try to keep their premiums down.
It said common deceptions included not disclosing motoring convictions, ranging from speeding to drink driving.
In one case a policyholder whose vehicle was stolen had his 7,000 claim rejected because it was discovered that he had failed to disclose two convictions for driving without insurance.
Another common practice, known as fronting, is where parents add their son or daughter to their motor insurance policy as an occasional named driver, when they are actually the main driver.
Other deceptions include failing to mention previous claims made on policies, such as for car accidents or burglaries, and underestimating alcohol and tobacco consumption when applying for life insurance.
Nick Starling, the ABI's director of general insurance and health, said: "Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences.
"Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal."
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Weather for Yorkshire
Thursday 24 May 2012
Today
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Temperature: 10 C to 25 C
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