Aviva insists £232,000 in bogus claims are being made every day
A MAJOR insurer detected bogus claims worth nearly a quarter of a million pounds every day last year.
Aviva saw a 9.5 per cent yearon-year jump in the number of fraudulent claims it declined in 2016, fuelled by increases in fraud detection across motor bodily injury, household and liability claims.
It declined one in 10 whiplash claims for proven or suspected fraud last year.
The insurance giant said that in total it detected more than £85m of insurance fraud last year, or around £232,000 of bogus claims every day.
The majority of fraud it detects is from third parties who are not its customers.
Whiplash fraud remains a major concern, Aviva said, with bodily injury frauds such as exaggerated or bogus whiplash claims continuing to account for the majority of frauds Aviva identifies. Bodily injury fraud accounts for 59 per cent of the total fraud Aviva detects.
The insurer said it is currently investigating more than 16,000 suspect bodily injury claims.
Organised fraud accounts for much of the new injury fraud Aviva detects. Last year, Aviva declined claims worth more than £25m linked to fraud rings.
Aviva is currently investigating more than 3,000 suspect whiplash claims linked to organised fraud.
The insurer said as the industry works together to clamp down on “crash-for-cash” vehicle collisions staged by criminals, it is believed that fraudsters are moving into new areas and making bogus public and employer liability claims.
Tom Gardiner, head of fraud at Aviva, said: “We vigorously defend our customers against fraudulent claims, even where it is not economic to do so, and will prosecute those people making fraudulent claims wherever possible.
“Looking at our bodily injury fraud data, it is clear that there continues to be an urgent need for fundamental reform of how minor personal injuries are compensated.”