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Net making insurance fraud easier?

Published on 3 Dec 2009 under category: legal

There has been a rise in cases of insurance fraud, a major body has said.

Steve Foulsham, technical services manager at the British Insurance Brokers' Association (BIBA), said that the trend for purchasing cover online could have influenced this rise.

He explained: "Because so many people now deal with their insurance over the internet, it puts them at arms length when they complete statements of fact. This makes it easier for people to commit underwriting fraud."

Mr Foulsham added that consumers may also suggest that their vehicle is mainly located in a different area so they get cheaper premiums.

He also said that people could say they have a longer no claims bonus than they actually have, which could drive down the cost of their insurance.

BIBA is the UK's leading general insurance organisation, representing the interests of insurance brokers, intermediaries and consumers on all matters related to cover.

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