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Car insurance - national database exposes fraudster

The ABI's national database launched earlier this year to combat car insurance fraud has claimed its first cheat.

A policyholder claimed that his car had been stolen and recovered stripped. A check on the database revealed that he had made exactly the same claim on the same vehicle six years ago.

The national database, launched at the beginning of the year by the ABI and run by vehicle information experts HPI, contains details of all vehicles written off following an accident or reported stolen. It helps identify fraudsters, for example by detecting those who insure their vehicle with several insurers at the same time and then try to claim from each following an accident, or having reported the vehicle as 'stolen'.

Justin Jacobs, Head of Motor and Risk Pricing at the ABI, said:

"Greater use of technology and data sharing is the way forward in the war on car insurance fraud. The independent survey clearly shows that the database is delivering a twofold benefit: helping insurers detect more fraud, and acting as a deterrent to make anyone thinking about cheating on their car insurance to think again. The survey shows us where to target further system improvements to continue to clampdown on criminal activity".

Miles Keeble, Chair of the ABI's MIAFTR Management Committee and Business Development Controller at Cox Insurance, said:

"The Database is clearly doing its job well - helping insurers to deter and detect car insurance fraud. In a short space of time, the system is already providing real benefits for insurers and honest policyholders."

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