ABI warns against insurance fraud
The Association of British Insurers (ABI) has warned people that their insurance could be invalidated if they lie to get cheaper premiums.
"People are increasingly putting their insurance cover at risk by cheating to get a better deal," the organisation told its members.
The ABI claimed that there is an increasing trend of people committing front-line fraud in order to reduce their premiums on everything from car insurance to life insurance.
Common deceptions include fronting, which is when people add themselves on to their parents’ motor insurance despite being the main user of their car, and underestimating tobacco and alcohol consumption when applying for life insurance.
Nick Starling, the ABI’s Director of General Insurance and Health, stated: "Honesty is the only policy."
"Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences," he added.
In related news, new rules on alcohol consumption from insurance companies could push up the cost of premiums for even moderate drinkers, claims the ABI.
The Insurance Helpline specialises in obtaining cover for people living with alcohol and drug addiction.
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