Thursday, 14 October 2010

Insurance scams

Crime goes up in a recession, and insurance claims increase. The two are not unrelated, and Scots police are complaining that they are not only wasting time but becoming complicit in fake insurance claims that require a police crime number.

I really don't know the answer to this one, other than differential premium pricing by the insurance companies; my boat insurance comes down each year as I maintain a claim-free record, and perhaps in future only those with long claim-free records will enjoy low premia, penalising the unlucky and the dishonest alike.

And the police need to get a lot better at detecting and solving real crime before anyone feels any sympathy. 


Blue Eyes said...

It's quite hard to prove a negative though. The police may suspect that the claim is false, but how to go about proving it unless there is clear evidence? It's no wonder the insurance companies are reluctant to pay out for genuine claims when there is so much scamming going on.

Demetrius said...

The trouble is we all pay for this. If there could be some way of checking it would be better. Unluckily some of the ways of keep checks would be far from popular.

BashTheMsm said...

the cure is worse that the disease. in countries where this system is in force, people smash you car (or boat) and if they have a chance run away to avoid increase in insurance. also many insurances apply very punitive charges in order to increase this behaviour, or to avoid people claming for small damages.