UK life insurance fraud a ‘rare’ occurrence
Life insurance fraud in the UK is "relatively rare", it has been claimed.
As the "canoe-man" story continues, the Association of British Insurers emphasised that providers have a number of checks in place to minimise deception.
Referring to the case of Anne and John Darwin, spokesman Jonathan French remarked: "It is safe to say that it is a very unusual set of circumstances."
"Life insurance companies have a number of checks and balances in place to minimise fraud and there are very low levels of fraud in the life insurance arena."
Highlighting the example of natural disasters, when a deceased individual’s body may not be recovered, Mr French added: "Insurance companies will carry out careful checks, where it is appropriate, to make sure fraudulent activity does not slip through the net."
According to the ABI’s research, 40 per cent of UK households have life cover and in 2006, the insurance industry paid out £17 million per day in death benefits.
Recent figures revealed that one in three Britons have no life insurance at all, with another one in three neglecting to renew their life cover for five years.
The Insurance Helpline specialises in obtaining cover for people with medical conditions
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